infrastructure and mega-projects

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).

By Al Weinrub - Non Profit Quarterly, July 13, 2023

There are two very different (and antagonistic) renewable energy models: the utility-centered, centralized energy model—the existing dominant one—and the community-centered, decentralized energy model—what energy justice advocates have been pushing for. Although both models utilize the same technologies (solar generation, energy storage, and so on), they have very different physical characteristics (remote versus local energy resources, transmission lines or not). But the key difference is that they represent very different socioeconomic energy development models and very different impacts on our communities and living ecosystems.

Let me start by recounting some recent history in California—the state often regarded as a leader in the clean energy transition.

In recent years, California’s energy system has failed the state’s communities in almost too many ways to count: utility-caused wildfires, utility power shutoffs, and skyrocketing utility bills, for starters. Currently, state energy institutions are advancing an all-out effort to suppress local community ownership and control of energy resources—the decentralized energy model.

Instead, they are promoting and enforcing an outmoded, top-down, utility-centered, extractive, and unjust energy regime—the centralized energy model—which effectively eliminates local energy decision-making and local energy resource development. This model forces communities to pay the enormous costs of unneeded transmission line construction and bear the massive burden of transmission line failures.

Using the power of the state to enforce the centralized energy model is at the heart of California’s new renewable energy tyranny. And this tyranny has now spread to the federal level, as substantial public investment is now set to go toward large-scale renewable energy projects across the country. These projects will be controlled by and benefit an increasingly powerful renewable energy oligarchy. Being touted as a solution to what is popularly regarded as the “climate emergency,” this centralized energy model has actually failed to meet our communities’ energy needs, and at the same time has exacerbated systemic energy injustice.

By Brooklyn Fox and Sarah Lehman - California State Lands Commission, July 7, 2023

Assembly Bill (AB) 525 (Chiu, Chapter 231, Statutes of 2021) was signed by the Governor in 2021 and requires the Californica Energy Commission (CEC), in coordination with the California Coastal Commission, Ocean Protection Council, State Lands Commission (CSLC), Office of Planning and Research, Department of Fish and Wildlife, Governor’s Office of Business and Economic Development, Independent System Operator, and Public Utilities Commission (and other relevant federal, state, and local agencies as needed) to develop a strategic plan (AB 525 Strategic Plan) for offshore wind development in federal waters by June 30, 2023.

On August 1, 2022, the CEC established a planning goal of 2 to 5 GW of offshore wind energy by 2030 and 25 GW by 2045 (Flint 2022). To meet these goals, the AB 525 Strategic Plan shall include, at a minimum, the following five chapters:

1. Identification of sea space, including the findings and recommendations resulting from activities undertaken pursuant to Section 25991.2 of AB 525.
2. Waterfront facilities improvements plan, including facilities that could support construction and staging of foundations, manufacturing of components, final assembly, and long-term operations and maintenance, pursuant to Section 25991.3 of AB 525. Economic and workforce development and identification of port space and infrastructure, including the plan developed pursuant to Section 25991.3 of AB 525.
3. Transmission planning, including the findings resulting from activities undertaken pursuant to Section 25991.4 of AB 525.
4. Permitting, including the findings resulting from activities undertaken pursuant to Section 25991.5 of AB 525.
5. Potential impacts on coastal resources, fisheries, Native American and Indigenous peoples, and national defense, and strategies for addressing those potential impacts.

Per Section 25991.3 of AB 525, based on the sea spaces identified pursuant to Section 25991.2 of AB 525, the CEC, in coordination with relevant state and local agencies, must develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, including construction and staging of foundations, manufacturing of components, final assembly, and long-term operations and maintenance facilities. The purpose of this AB 525 Port Readiness Plan is to perform a detailed assessment of the necessary investments in California ports to support offshore wind energy activities, including construction, assembly, and operations and maintenance. This report will inform the AB 525 Strategic Plan.

For more details, see: AB 525 Reports: Offshore Renewable Energy

Download a copy of this publication here (PDF).

By Brooklyn Fox and Sarah Lehman - California State Lands Commission, June 16, 2023

The purpose of this Assembly Bill (AB) 525 Workforce Development Readiness Plan is to provide recommendations for workforce development efforts ahead of the necessary seaport investments and activities identified in the AB 525 Port Readiness Plan.

The workforce development readiness plan was developed considering the workforce required in California to deliver 25 GW of offshore wind power generation capacity by year 2045.This assessment includes the potential direct workforce required for the delivery of offshore wind projects, the workforce required for related port infrastructure upgrades as outlined in the AB 525 Port Readiness Plan, and the workforce requirement related to transmission network upgrades.

The workforce development assessment consists of three discrete pieces: (1) a needs assessment that analyzed the scale, timing and necessary skills of the required workforce; (2) an assessment of the currently available workforce and training infrastructure in California to support the growth of the offshore wind industry; and (3) a gap and opportunity analysis between the needs and availability assessments.

For more details, see: AB 525 Reports: Offshore Renewable Energy

Download a copy of this publication here (PDF).

By Luis Neuner, Jennifer Kalt, Caroline Griffith, and Colin Fiske - Lost Coast Outpost (reposted at Wild California), May 10, 2023

Humboldt Bay Offshore Wind & Heavy Lift Multipurpose Marine Terminal Conceptual Master Plan. Image from Humboldt Bay Harbor Resource & Conservation District.

Humboldt County’s proposed offshore wind project would significantly reduce carbon emissions throughout California by providing upwards of 1.6 gigawatts of clean, renewable-sourced energy. But to ensure the success of offshore wind and to meet the promise of climate action, decision-makers must commit to a green port facility capable of building and servicing the turbines while not further contributing to greenhouse gas emissions or polluting Humboldt Bay.

A key component of a thriving offshore wind industry is a port capable of constructing, assembling, and maintaining wind turbines. The Humboldt Bay Harbor District has partnered with Crowley Wind Services, a multinational port development company, to build this heavy lift terminal on the Samoa Peninsula. There are various potential benefits: port development could create many family-wage jobs and substantially contribute to a growing local economy—all while making important strides towards a clean-energy future to address the climate crisis.

Unfortunately, these types of heavy-lift terminals have a mixed track record for communities. On land, port equipment such as terminal tractors, forklifts, yard trucks, cranes, and handlers commonly run on diesel. In the water, most heavy-duty cargo ships and tugboats also run on diesel or heavy fuel oil, polluting the air. Ships and tugs even burn fuel while docked at the terminal to maintain a base load of electricity. As a result, communities surrounding these ports often suffer from the effects of air pollution. In Los Angeles, for example, air quality studies revealed that these diesel fumes significantly raised cancer risk for people within fifteen miles of the terminals.

Our port doesn’t have to be this way. Recent technological developments have made major progress towards enabling the possibility of a ‘green port.’ Green ports seek to make all aspects of operation sustainable, from the heavy machinery on land to the ships docked at the harbor. This work requires moving away from fossil fuels and shifting towards electrification and other zero-carbon energy sources, such as green hydrogen.

By staff - The Climate and Community Project, et. al., May 2023

It is indisputable that the climate emergency requires the United States to rapidly transform its majority fossil energy system to 100% clean and renewable energy.

The United Nations Intergovernmental Panel on Climate Change’s recent sixth synthesis report makes absolutely clear that an unprecedented bold transition to renewable energy with an equally aggressive effort to halt new fossil fuel development and phase out existing fossil fuel usage is absolutely vital to avoiding the most catastrophic consequences of climate change.

This necessary transformation presents a tremendous opportunity to pursue a far more just path forward—one that ends the status quo entrenchment of the fossil fuel industry; empowers federal agencies to use their authorities to accelerate the transitions to a justly sourced, justly implemented, resilient, and equitable power system; actualizes the principles of environmental justice; and preserves our core environmental laws.

This system is composed of our most commonsense and affordable solutions that can be deployed in an efficient and just manner: energy conservation, distributed and resilient renewable energy and storage, and responsibly-sited utility-scale renewables, all paired with robust community engagement and opportunities for real energy democracy.

However, both Congress and the Biden administration are failing to exercise their imaginations to embed justice in a renewable energy future.

After the passage of the Inflation Reduction Act, both Democratic and Republican Congress members have proposed numerous “permitting reform” proposals, but the majority continue to argue that achieving a fast transition to renewable energy necessarily means undermining bedrock environmental laws like the National Environmental Policy Act (NEPA).

This false logic must be interrogated. While these proposals might marginally improve the deployment of utility-scale renewable energy particularly on pristine lands, our energy needs can and must also be met with renewable energy on built surfaces that is more resilient, affordable, and respectful toward communities and wildlands.

Furthermore, any such purported gains of “permitting reform” proposals would be massively dwarfed by the emissions of fossil fuel projects that would also be expedited and result in deepening substantial environmental injustices for countless communities around the nation.

Download a copy of this publication here (PDF).

By Our Changing Climate - Our Changing Climate, March 10, 2023

By staff - Blue Green Alliance, February 24, 2023

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.

By Paul Deaver and Jim Bartridge - California Energy Commission, February 2023

This report responds to the directive set forth by Assembly Bill 525 (AB 525, Chiu, Chapter 231, Statutes of 2021). The law directs that on or before December 31, 2022, the California Energy Commission (CEC) shall “complete and submit to the Natural Resources Agency and relevant fiscal and policy committees of the Legislature a preliminary assessment of the economic benefits of offshore wind as they relate to seaport investments and workforce development needs and standards.” This report addresses these requirements.

This report is the second of four products that AB 525 directs the CEC to prepare, informing a strategic plan for offshore wind energy turbines installed off the California coast in federal waters in coordination with federal, state, and local agencies and a wide variety of stakeholders. The strategic plan must be submitted to the California Natural Resources Agency and the Legislature no later than June 30, 2023. The strategic plan is to be informed by interim activities and products developed by the CEC that include this report and two additional reports. The first report, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, was adopted by the CEC at the August 10, 2022, public business meeting. That report established offshore wind energy planning goals of 2,000–5,000 megawatts by 2030 and 25,000 megawatts by 2045. The other interim report, also due on or before December 31, 2022, will provide a permitting roadmap that describes the time frames and milestones for a coordinated, comprehensive, and efficient permitting process for offshore wind energy facilities and associated electricity transmission infrastructure off the California coast.

For more details, see: AB 525 Reports: Offshore Renewable Energy

Download a copy of this publication here (PDF).