The American Energy Worker Opportunity Act was introduced in the Senate on October 10, 2021 by Senator Sherrod Brown [D-OH] on behalf of Senators Bob Casey [D-PA], Sheldon Whitehouse [D-RI], Tammy Baldwin [D-WI], Michael Bennet [D-CO], Tammy Duckworth [D-IL], Tina Smith [D-MN], and Elizabeth Warren [D-MA]. The bill was read twice and referred to the Committee on Finance.
THE BILL: S.2966 “As we transition to a clean energy future, we cannot leave workers in these industries behind. The American Energy Worker Opportunity Act would create a worker-centered plan to support workers, their families and communities that have relied on fossil-fuel production as our energy needs change. Our Build Back Better budget makes major investments in renewable energy, and we must use this once-in-a generation opportunity to support our energy workforce through this transition.”--Senator Tammy Baldwin What does the Bill do? The goal of this partisan bill is to provide resources and training opportunities to help transition workers supported by the fossil fuel industry to the clean energy industry so that they are not displaced, or “left behind.” This transition program includes supplemental wages, health benefits, education and training funds, and educational benefits for children of laid off workers. This program will be overseen by the Office of American Energy Workers which will be established within the Department of the Treasury, and will take effect on the date that this new office is established. Workers are eligible to participate if their employment is terminated from a coal mine or fossil-fuel intensive plant due to closure of the facility, and prior to the closure, the worker must have been employed for at least 12 months working at least 30 hours a week. The closure in this scenario indicates any reduction in production that has associated permanent layoffs after the date the bill is enacted. Eligible workers will receive a wage replacement at least once a month that is equal to the amount the individual was making during the 12 month period prior to termination, and that will be substantial enough to allow the individual to maintain health benefits as well as contribute to their retirement. Wage supplements will also be adjusted each calendar year for inflation. Additionally, eligible workers will be provided the opportunity to partake in training through the form of grants, that will help them to make a career transition. Finally, eligible workers with children will be given educational grants for their children up to and including a four-year degree. Why was it proposed? There is currently a global shift towards clean energy alternatives to fossil fuels in an effort to slow the rate at which the climate is warming. Currently, the natural gas industry employs 437,300 people, the petroleum industry employs 681,500 people, and the coal industry employs 164,700 people (1), providing stability for families in the form of good paying jobs and health benefits. These workers have been essential in ensuring that there is accessible and reliable electricity that fuels homes and stimulates the economy, and it is irresponsible and unfair to leave them behind as the country pushes forward towards a renewable future. As this global transition to clean energy alternatives increases exponentially, we face the possibility of a massive workforce shortage as well as increasing unemployment rates as the need and production of fossil fuels gradually slows (2,3,4). Benefits There is currently a huge shortage in the renewable energy workforce, so transitioning workers from fossil fuel to the renewable energy sector where possible could catalyze a change and provide many employment opportunities (5). The transition could be set up to allow workers with learned skills in certain areas to continue doing similar things in the renewable sector, and live in the same geographic area when possible. With many people already displaced due to the ongoing pandemic, this bill would provide a way for some people to make a transition into a new but similar line of work. Challenges If this bill is passed, the concert of displacement will be a major challenge. Many people working for the oil and gas industry have established their sense of home and community of support. Starting over for individuals or families can be daunting, and the transition between sectors will have to take place so there’s minimal disturbance to their lives. Similarly, those who have been established in their careers may not want to start over on a new career path (e.g. laid-off worker witness testimony, multiple House hearings, 6), making it essential to transition people to jobs that are similar in at least certain aspects to what they were doing before. Where that isn’t possible, using the workers’ expertise as efficiently as possible is critical. Either way, everyone transitioning will need some level of new training. Additionally, this bill requires a significant amount of money to fund. It includes health insurance and grants for worker training, and funding up to and including a 4-year degree to eligible workers with children. Depending on how many workers participate, this is a substantial investment. To this end, many people are still skeptical about the transition away from their current line of work, and are hesitant to stray away from fossil fuels. There is significant fear about the reliability, feasibility, and cost of alternative energy sources. Although it is sometimes posed differently, fossil fuels will be necessary in the coming years to fuel cars and other petroleum-burning engines as it isn’t remotely possible to switch everything over to renewables overnight. However, as automobile industries tap into electric vehicles and the country invests in renewable energy sources, the demand for fossil fuels will eventually drop (though somewhat dependent on leadership). Educating people about job opportunities and developing technologies that increase the reliability of renewable energy sources will be essential to making these transitions happen with fossil fuel workers on board. This has been successful in other countries, such as Scotland (e.g., 7) The reality of Congress This bill is very partisan, with support from only Democrats, so as of right now it seems unlikely that it will pass into law. How Republicans see it: While there is bipartisan support for new technologies to work towards lowering carbon emissions, they see this bill as part of a “crusade” against the oil and gas industry. Republicans share the fear of rising energy costs due to a rapid shift away from a reliable energy source, and worry about increasing the national debt. How Democrats see it: The Bill aligns well with the Democratic party platform, and specifically it is part of a broader effort to reduce oil and gas production to shift towards low carbon energy initiatives, while supporting the American workforce in the process. Want to advocate? Does this bill resonate with you? Do you want to see it become a law? Have concerns or thoughts you would like to discuss? There are currently 11 co-sponsors of this bill in the Senate: Sherrod Brown [D-OH], Bob Casey [D-PA], Sheldon Whitehouse [D-RI], Tammy Baldwin [D-WI], Michael Bennet [D-CO], Tammy Duckworth [D-IL], Tina Smith [D-MN], and Elizabeth Warren [D-MA], Richard Blumenthal [D-CT], Cory Booker [D-NJ], Amy Klobuchar [D-MN], and Alex Padilla [D-CA]. Do you see your Congresspeople listed above? If not, you can email your policymakers by finding their emails at https://www.congress.gov/members?searchResultViewType=expanded or call their offices to voice your thoughts. Remember to use our Resources page for more information and guidance when reaching out! Footnotes
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