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    A coal plant bulldozed an Ohio town displacing residents. Now its owners include a big Trump donor

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    Nestled beneath two precipitous spires billowing smoke from what has been called the deadliest coal plant in the United States lies the husk of the small but once-thriving town of Cheshire, Ohio.When residents here were routinely shrouded in a toxic, blue-tinged fog of pollution from the plant two decades ago, a unique yet telling solution was settled upon: the company causing the pollution would purchase the entire town to move people en masse from their homes.For the several hundred people who lived here beside a nook of the Ohio River on the eastern border of the state, the wrenching dismemberment of their community in 2002 is still raw. Yet looming stubbornly over the remnants of this ghost town is the imposing Gavin coal plant, as its owners battle federal regulators who allege ongoing violations of clean air and water rules.“Rather than deal with the source of pollution they thought it better to buy out and bulldoze a whole town,” said Neil Waggoner, an Ohio-based campaigner at the Sierra Club, which estimates Gavin’s pollution causes about 244 premature deaths a year, making it America’s most lethal coal plant, it said in a report last year based on Environmental Protection Agency (EPA) and census data. “It’s extraordinary. In many ways, it’s dystopian.”View image in fullscreenView image in fullscreenThe tale of the Gavin power station, one of the largest coal complexes in the US and the country’s sixth highest such emitter of planet-heating carbon dioxide, is one that illustrates deep seams of support for coal in this part of the midwest but also – with a looming presidential election – salient politics.Since 2017, the Gavin plant has been part-owned by Blackstone, a private equity firm whose billionaire chief executive, Stephen Schwarzman, is one of the leading backers of Donald Trump’s presidential campaign, having donated $3m to a Trump-aligned Super PAC in 2020. Individuals connected to Blackstone are also among the most generous financial supporters of JD Vance, the Ohio senator and Trump’s running mate.Both Trump and Vance have lambasted moves by Joe Biden’s administration to regulate coal, the dirtiest of all fossil fuels and a catalyst of the climate crisis, with particular ire aimed at a recent EPA rule that requires coal-fired power plants to slash CO2 emissions by 90% within a decade or face closure.Trump has vowed to kill off the rule he’s called “a regulatory jihad to shut down power plants all across America” if he returns to the White House, while Vance has complained of “wanton harassment of fossil fuel companies” and joined with other Senate Republicans in attempts to block the regulation.The EPA edict poses an existential threat to the Gavin plant, which spews out 13m tons of carbon dioxide a year, along with a host of other toxins. Faced with the costly task of capturing the plant’s emissions, Lightstone Generation, the joint venture operator, is also wrestling with EPA allegations from this year that it violated clean air laws and failed to properly contain a vast nearby dump of coal ash – the leftover waste from burning coal that can leach arsenic, mercury and other cancer-causing toxins into rivers and streams – fed by a mile-long conveyor belt from the power plant.“Blackstone is used to playing that political game and it’s in their interest to keep the status quo so coal plants don’t face accountability,” said Alissa Jean Schafer, climate director of the Private Equity Stakeholder Project, which outlined in a recent report that Gavin’s operators face upwards of $40m in costs to remedy its pollution issues, recommending it join a spate of coal plants that have closed in Ohio and nationwide.“There is a trend of private equity walking away from polluting assets without being liable for the environmental cleanup,” Schafer added. “They want to squeeze as much profit as possible while they can from this outdated, dangerous coal plant.”View image in fullscreenBlackstone’s Schwarzman, who has previously warned of energy shortages and “real unrest” around the world if fossil fuels are phased out too quickly, has allied with Trump, who weakened rules around coal ash disposal and coal plant emissions when he was president. “You can imagine folks at Blackstone want to see similar rollbacks under a second Trump presidency, and you can imagine Vance towing the line,” said Schafer.A Blackstone spokeswoman said the Gavin plant is a “legacy investment” that has spent more than $1bn to update its air quality control technology, complies with federal and state limits on emissions, and is in the process of closing a coal ash pond. “All political donations by our employees are strictly personal,” she added.The reach of the Gavin plant, built in 1974 and named after Gen James “Jumpin’ Jim” Gavin, is prodigious. It chews through about 20,000 tons of coal a day, enough to electrify 2m homes. A pair of enormous 800ft-tall rust-colored smokestacks, jutting imperiously above the treeline on the approach to Cheshire, waft a cocktail of emissions for hundreds of miles, with environmentalists blaming it for causing hazy skies as far away as the Shenandoah national park, in Virginia.The immediate surroundings of the largest power plant in Ohio, however, are denuded. The blue plumes are gone but the plant itself still gives off a pungent sulphur smell, a violent whiff akin to rotting eggs that stings the nose. The small cluster of Cheshire streets at the foot of the plant contain patches of grass where homes once sat, like a mouth that’s had most of its teeth knocked out.View image in fullscreenA church, a school and even the traffic lights here have been removed, along with the houses that were torn down. Just a few scattered buildings remain. During the exodus, some people lifted their entire wood-paneled homes on to trailers and moved them away. In all, 221 residents, the vast majority of the population, departed in just six months in 2002.“I couldn’t even watch my house being torn down, it was terrible,” said Jennifer Harrison, who grew up near Cheshire and moved to the town with her now late husband in 1980. “We spent the first 23 years of our married life and raised our kids here. I just can’t think about it too much, it’s horrible.”Harrison, who served as Cheshire’s town clerk and lived a short distance from the Gavin plant, remembers getting blurry eyes and tasting sulphur in the air in the late 1990s – a problem that worsened to the extent that a blue-hued haze of pollution would settle upon the town, particularly on humid days. It became so bad that residents had to stay indoors, the miasma so strong it would eat the paint off cars.“We had what we called ‘touchdowns’, where this plume would come from the smokestack and touch down in town,” she said. “It was like clouds on the ground. People got sores on their mouths, they got breathing problems, it affected lives.”View image in fullscreenView image in fullscreenIronically, the problems worsened once the EPA, in 2000, cited the Gavin plant for violating the Clean Air Act for contributing to acid rain as far away as New York. In response, pollution controls installed by the plant triggered what American Electric Power (AEP), the plant’s owner until 2017, called a “totally unexpected” increase in sulphur trioxide that mixed with water vapor from scrubbers used to filter pollution from the smokestacks.This combination allowed a sulphuric acid mist to flood into Cheshire, causing what the EPA documented as “irritation of the eyes, nose, and throat; shortness of breath; and asthma-like symptoms” among residents in 2001. “We had to fight them continually,” Harrison said of the plant’s owner. “We had to become a pain in their ass just to finally get anything done.”AEP, facing mounting legal pressure over the toxic air, eventually offered a deal thought to be a US first: $20m to buy the town of Cheshire, with homeowners offered three times the asking price for their houses – around $150,000 each – in return for locals relocating and agreeing to not sue the company over any future adverse health impacts.Elderly residents who wished to stay in their homes were allowed to do so, with some holdouts remaining until they died, when their homes were bulldozed too. AEP, which had revenues of $14.5bn in 2002, was able to subsume a town founded in 1811, with lawyers taking around a quarter of the total buyout fund.Harrison, who was involved in the effort to pursue AEP through the courts, said she was initially “shocked” at the offer but came to realize it was the only viable choice. “We probably should’ve held out for more but the lawyers told us that was the final deal,” she said.“We felt if we didn’t take the deal we’d be stuck here forever and they wouldn’t fix the problem. Most of the people let them buy the property and got out of town because at that point our properties were worthless.”What was lost was a slice of Americana, a close-knit place of white picket fences, a church, village picnics and a trusted community. “Everyone knew everyone, you could hear your kids out playing on their bikes and know someone was looking out for them,” said Harrison. “It was very Norman Rockwell.”The grief of this loss stirred anger among some Cheshire residents, not so much at the coal plant in a stretch of Appalachia where the harms of coal have long been sold as a price worth enduring, but rather at town council leaders like Harrison who struck the buyout deal. Friendships were severed, angry words shouted and graffitied dollar signs were sprayed onto the Harrison family home.“It was really unsettling,” said Megan Lawhon, Harrison’s daughter who turned 18 the day before the buyout was agreed to. She’s now a high school teacher. “People blamed us for a lot of untrue things, said we were greedy for taking the buyout money. I find it really hard to even come back here.”Gesturing to the Gavin plant, Lawhon added: “The culprit is just still sitting here. It’s like a family member has been murdered and the killer was just allowed to pay out some money and that’s it. And everyone here accepts that’s just the price of living in Appalachia, that there is no other option. We just die with a smile on our faces.”Advocates for the Gavin plant point out that it generates about half of the economic activity in Gallia county, in which Cheshire sits. There remains a certain cynicism that anything, such as a clean energy boom that Biden has sought to spur, can replace the jobs and investment that coal has long conferred to the Ohio River valley.In 2020, Trump, who has offered unfulfilled promises to resurrect the ailing coal industry, amassed 77% of the vote in Gallia county. A barn sitting beside the Gavin plant features a large picture of the former president shaking his fist with the words: “The audits prove Trump won!”“I know if Kamala [Harris] and that other gentleman [Tim Walz] had their way this coal plant would be shut down right now and we’d be going back to the 1800s,” said Mark Coleman, who is mayor of Cheshire. Coleman lives on the outskirts of the town, which had its boundaries expanded to now cover a population of 124.“If that plant closed our area would be gone. I’ve lived here all my life, this has always been part of it, my dad was a coal miner. The problem was fixable and Gavin did fix it, we haven’t seen a blue plume in years. I was more frustrated with the people who sold out.”View image in fullscreenLightstone, Gavin’s operator, still owns the relic of Cheshire and has shown no willingness to sell the land to usher in new residents. Neither Blackstone nor ArcLight Capital, the two joint venture partners that form Lightstone, answered questions on Cheshire’s future.Coleman said attracting new businesses here is tough; a plan for a Dollar General was recently dashed, and even getting a street paved is difficult. Drug addiction, like in much of Appalachia, stalks this place. Cheshire’s future appears moribund, a marooned corner of a region where old certainties have evaporated.“Our town has lost its identity, it’s sad,” Coleman said. “It’s hard to get things started back up again. Time has healed wounds, but at the same time we don’t go out to dinner with everyone. People have drifted apart.”The mayor has not heard from Vance about Cheshire’s situation. The vice-presidential candidate didn’t respond to questions from the Guardian about his links to Blackstone and the Gavin plant, or what his plan is for communities exposed to coal-related pollution.“If JD Vance really feels a connection to Appalachia, which he has ridden hard, you’d think he’d at least ask some questions about all this,” said Lawhon.“But I’d be surprised if he even knew about us. I mean if it’s going to cut into profits, the environment won’t ever be a priority. Which means that this whole thing could happen again somewhere else in the United States, and somebody’s going to have to fight the exact same battle we did.” More

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      Corporations are forcing Americans to pay more for less – in their own words | Matt Stoller

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      In 2022, the Biden administration and the oil industry were in a brutal fight over oil prices. The president was demanding that domestic oil producers invest and drill more to address spiking costs, but Texas frackers were recalcitrant. “Whether it’s $150 oil, $200 oil, or $100 oil, we’re not going to change our growth plans,” the Pioneer CEO, Scott Sheffield, said, echoing comments from other leaders at different domestic firms. Profits would go to investors, not to more rigs to address pain at the pump.The oil barons won the fight. Profits in the oil industry jumped from virtually nothing in 2020 to the hundreds of billions in 2021, and then doubled again in 2022. And yet, economists did not see any sort of plot at work. “Don’t blame the oil companies for their high profits,” said the economist Olivier Blanchard. “It is not price gouging, just how markets work.”Three weeks ago, the Federal Trade Commission released information showing how naive such statements really were. Sheffield, it turns out, allegedly helped engineer a price-fixing scheme to reduce oil production and increase prices for Americans at the pump. His goal was to end fierce competition in the industry, which had, as he put it, “lowered the price by $20 to $30 per barrel over the past 10 years”. The FTC banned Sheffield from his corporation’s board and has reportedly referred allegations against Sheffield to the Department of Justice for possible criminal investigation.The magnitude of this alleged plot is stunning. Oil prices are controlled by the Organization of Petroleum Exporting Countries (Opec), a cartel composed of nations with known oil reserves. Because Opec is made up of governments, price-fixing law doesn’t apply. But these laws do apply to domestic US firms engaged in shale oil production, who competed fiercely with Opec from 2014 to 2016 for market share, bringing down prices in the interim.In 2017, tired of this price war, Texas oilmen and Opec officials began sitting down to dinners, and by 2021, Texas had de facto joined Opec. Companies like Pioneer, Devon Energy and Continental Resources publicly pledged to hold back production. As the FTC found, Sheffield was also privately sending hundreds of text and WhatsApp messages to Opec officials, seeking to align US producers with the global cartel.Class-action lawyers are on top of the scandal, but there’s also increasing political interest. At a hearing last week, the US representatives Rosa DeLauro and Matt Cartwright began criticizing “big oil” for this scheme, and Representative Mark Pocan even called for jail time for the oil executives allegedly involved. The top Democrat on the powerful energy and commerce committee, Frank Pallone, just launched a wide-ranging investigation across the industry.The US consumes 7bn barrels of oil a year, meaning that if the dollar amount went up by $20-30, as Sheffield calculated, that’s roughly $400-700 a person in America, a transfer from consumers to oil men and their private equity backers. That’s a not small amount of what inflation wrought in 2021, which was about $4,700 per capita in increased prices. (I suspect the amount is actually more than $20-30 a barrel, since price spikes tend to be larger than the average over long periods of time. But we’ll leave it at what Sheffield calculated.)What is perhaps most shocking about this scandal is not that it happened, but that it happened in plain sight. Oil CEOs weren’t hiding. In 2021, as prices rose on the end of Covid lockdowns, Sheffield publicly threatened rivals who might increase production, saying “all the shareholders that I’ve talked to said that if anybody goes back to growth, they will punish those companies”.For years, there has been a debate between macro-economists like Blanchard about the source of post-Covid inflation. Many economists chalked up price hikes to workers demanding more money and saw the way to address it as scaring workers into accepting less money by throwing a bunch of them out of work. “We need five years of unemployment above 5% to contain inflation,” said Larry Summers. That’s what their models told them.By contrast, 85% of Americans, along with a few iconoclastic scholars and writers, said “corporations being greedy and raising prices to make record profits” was the cause of inflation. Why? Well it might have been because they noticed that CEOs were routinely telling investors that they were raising prices to increase margins, not to meet wage demands. Or it might have been because they experienced large and unexplained price increases in meat, rent, hotels, groceries and restaurants. Indeed, when the CEO of Wendy’s recently said Wendy’s was considering using AI to engage in dynamic pricing, the public outrage was palpable.It’s time to declare the debate over. In 2021, the total corporate profit increase was $730bn, or a little over $2,100 a person. That’s a large chunk of the inflationary increase in costs. Moreover, the price-fixing in the oil industry, which contributed roughly $200bn of that, isn’t an anomaly.Take post-Covid rent hikes. One software and consulting pricing firm for landlords, RealPage, specialized in telling its clients to hike rents more than they otherwise might. As of December of 2020, RealPage had nearly 32,000 clients, including “10 largest multifamily property management companies in the United States”. There are multiple antitrust suits accusing the private equity-owned firm of organizing a massive price-fixing conspiracy to inflate rents across the board.Beyond rent, the Biden administration or private plaintiffs now have credible antitrust claims against firms engaged in price-fixing in meat, hotels and large online sellers like Amazon. Corporations in a range of industries have made comments similar to those of Sheffield.Alex Cisneros, an executive for Red Roof Inn, told a trade outlet that Red Roof Inn was using a software package called STR from CoStar to systematically hike prices across the hotel industry. “Red Roof’s franchisees for the most part are making more money with less occupancy,” Hotel News Now explained. “Red Roof is now providing more data to franchisees to educate and get them comfortable commanding higher rates.”According to a lawsuit, an unnamed executive at Smithfield, a pork processor, summarized the advice he got from Agri Stats, a consulting firm that coordinates production in the industry, as: “Just raise your price.”Rent, meat, oil and hotels are big sectors, so criminal activity in the form of price-fixing to boost profits should bust through the illusions economists have about how our markets really work. There are also a number of concrete steps policymakers can take to respond to this price-fixing.The first is to arrest or sue the offending executives for criminal activity.The second is to strengthen price-fixing and merger laws, allow more private class-action suits, force judges to speed up cases and increase the budget of antitrust enforcers to make collusion more difficult.The third is to reform the Federal Reserve so policymakers there stop using macro-economic models that avoid considerations of profits and price-fixing.And the fourth is, frankly, political. One key reason there is action on these schemes is because Biden has prioritized antitrust enforcement. He hasn’t put enough into antitrust, and he doesn’t talk about it very often. But he should, or else Americans are likely to fall into the trap of thinking that what is good for big business is good for their pocketbooks, when the opposite is so often the case.
      Matt Stoller is a writer and former policymaker who focuses on the politics of market power and antitrust More

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      Alleged ‘deal’ offer from Trump to big oil could save industry $110bn, study finds

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      A “deal” allegedly offered by Donald Trump to big-oil executives as he sought $1bn in campaign donations could save the industry $110bn in tax breaks if he returns to the White House, an analysis suggests.The fundraising dinner held last month at Mar-a-Lago with more than 20 executives, including from Chevron, Exxon and Occidental Petroleum, reportedly involved Trump asking for large campaign contributions and promising, if elected, to remove barriers to drilling, scrap a pause on gas exports, and reverse new rules aimed at cutting car pollution.Congressional Democrats have launched an investigation into the “ethical, campaign finance and legal issues” raised by what one Democratic senator called an “offer of a blatant quid pro quo”, while a prominent watchdog group is exploring whether the meeting warrants legal action.But the analysis shared with the Guardian shows that the biggest motivation for oil and gas companies to back Trump appears to be in the tax system, with about $110bn in tax breaks for the industry at stake should Joe Biden be re-elected in November’s election.Biden wants to eliminate the tax breaks, which include long-standing incentives to help drill for oil and gas, with a recent White House budget proposal targeting $35bn in domestic subsidies and $75bn in overseas fossil fuel income.“Big oil executivess are sweating in their seats at the thought of losing $110bn in special tax loopholes under Biden in 2025,” said Lukas Ross, a campaigner at Friends of the Earth Action, which conducted the analysis.Ross said the tax breaks are worth nearly 11,000% more than the amount Trump allegedly asked the executives for in donations. “If Trump promises to protect polluter handouts during tax negotiations, then his $1bn shakedown is a cheap insurance policy for the industry,” he said.View image in fullscreenSome of the tax breaks have been around for decades, and are a global issue, but the US oil and gas industry benefited disproportionately from tax cuts passed by Trump when he was president in 2017.Next year, regardless of who is president, a raft of individual tax cuts included in that bill will expire, prompting a round of Washington deal-making over which industries, if any, will help fund an extension.Lobbying records show that Chevron, Exxon, ConocoPhillips, Occidental, Cheniere and the American Petroleum Institute (API) have all met lawmakers this year to discuss this tax situation, likely encouraging them to ignore Biden’s plan to target the fossil fuel industry’s own carve-outs.Chevron and ConocoPhillips, the analysis shows, lobbied on a deduction for intangible drilling costs, the largest federal subsidy for US oil and gas companies, which is worth $10bn, according to federal figures.View image in fullscreenOther lobbying centered on more generalized tax breaks that the oil and gas industry has taken advantage of. ExxonMobil lobbied for a little-known bill that would restore a bonus depreciation deduction to its full value, which, according to Moody’s, would allow big oil to avoid Biden’s newly established corporate minimum tax.“Unlike previous administrations, I don’t think the federal government should give handouts to big oil,” Biden said following his inauguration in 2021. But Congress and the president will have to agree to any new tax arrangements next year, and the fossil-fuel industry continues to have staunch support from Republicans and some Democrats.The API insisted its industry gets no favorable treatment in the tax system. “America’s energy industry proudly invests in communities, pays local, state and federal taxes and receives no special tax treatment from the federal government,” an API spokesperson said.“This nonsense report is another attempt to distract from the importance of all energy sources – including oil and natural gas – to meet America’s growing energy needs.”Who was at Mar-a-Lago?The high stakes for the fossil-fuel industry, as well as for the climate crisis, have placed scrutiny upon those who attended Trump’s dinner at Mar-a-Lago. Although representatives of large oil companies were present, the majority of known attendees were executives of smaller firms focused on specific subsections of the fossil-fuel industry, such as fracking or gas exporting.Those companies are not often held to account in international forums such as the UN climate talks or the Oil and Gas Climate Initiative, which means they are less likely to make buzzy climate pledges. They may also be more threatened by regulations on individual parts of the US fossil fuel economy, such as auto-emissions standards aiming to quell gas-car usage.skip past newsletter promotionafter newsletter promotion“The oil majors … see their future in plastic [production]. That doesn’t apply to the smaller companies who don’t work across the industry,” said Kert Davies, director of special investigations at the Center for Climate Integrity. “They’ve got nothing to shift to.”Among other reported attendees were the head of the company Venture Global, which rivals Qatar as one of the world’s leading liquefied natural gas exporters. This year, the company came under fire after it was revealed to have been using millions of gallons of water to construct a Louisiana LNG terminal while a nearby community faced extreme shortages. The firm was also accused late last year of reneging on its contracts by Shell and BP.Another attendee: Nick Dell’Osso, CEO of Chesapeake Energy, which after years of court fights had to pay $5.3m to Pennsylvania landowners who say they were cheated out of gas royalties. The company’s earlier CEO, John McClendon, was indicted in 2016 on charges of conspiring to rig bids on oil and gas leases in Oklahoma.Billionaire oil tycoon Harold Hamm, who founded fossil fuel exploration company Continental Resources, was also present. He helped raise money for Trump’s 2016 presidential run and was under consideration to be Trump’s energy secretary, and was reportedly one of the seven top donors who had special seats at Trump’s inauguration. Though he eschewed the former president after his 2020 loss, he donated to his primary campaign in August.View image in fullscreenAsked about the meeting, API spokesperson Andrea Woods said the organization “meets with policymakers and candidates from across the political spectrum on topics important to our industry”. She said the premise of Democrats’ investigation into the meeting is “patently false and an attempt to distract from a needed debate about America’s future – one that requires more energy, including more oil and natural gas”.Amid the scrutiny of last month’s Mar-a-Lago dinner, Trump is continuing to court oil-tied funders. On Tuesday evening, he held a Manhattan fundraising dinner that cost a minimum of $100,000 to attend.Among the event’s hosts, advocacy group Climate Power noted, was John Catsimatidis, the chief executive of the much-scrutinized gas refiner United Refining Company and owner of two grocery chains, a radio station and holding company Red Apple Group.Between 2017 and 2023, United Refining Company’s small refinery in western Pennsylvania was the most dangerous refinery in the country, with federal data showing it reported 10 times the average number of injuries for a refinery – 63% higher than the next-most dangerous facility.The company also reportedly sought to dodge environmental regulations using a process championed by Trump’s EPA administrator Scott Pruitt.Catsimatidis has also been criticized for neglecting vacant gas-station properties and for blaming gas prices on “open” borders, corporate taxes and worker benefits. The Pennsylvania town home to United Refining pays some of the highest gas prices in the state, despite the presence of the refinery, raising suspicions among some residents about the company’s practices.Trump this week also held a fundraiser hosted by the US senator JD Vance, who is one of the largest recipients of big-oil funding in Congress, and another with Joe Craft, a major Trump donor who owns massive coal producer Alliance Resource Partners. In 2016, Craft reportedly gifted Pruitt courtside basketball tickets after the agency crafted pro-coal regulations. More

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      Republicans in the US ‘battery belt’ embrace Biden’s climate spending

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      Republicans in the US ‘battery belt’ embrace Biden’s climate spending Southern states led by Republicans did not vote for climate spending, but now embrace clean energy dollars like never beforeGeorgia, a state once known for its peaches and peanuts, is rapidly becoming a crucible of clean energy technology in the US, leading a pack of Republican-led states enjoying a boom in renewables investment that has been accelerated by Joe Biden’s climate agenda.Since the passage of the Inflation Reduction Act (IRA) in August, billions of dollars of new clean energy investment has been announced for solar, electric vehicle and battery manufacturing in Georgia, pushing it to the forefront of a swathe of southern states that are becoming a so-called “battery belt” in the economic transition away from fossil fuels.Biden’s climate bill victory was hard won. Now, the real battle startsRead more“It seems like all roads are currently leading to Georgia, it’s really benefiting disproportionately from the Inflation Reduction Act right now,” said Aaron Brickman, senior principal at energy research nonprofit RMI. Brickman said the $370bn in clean energy incentives and tax credits in the bill are a “complete game changer. We’ve just frankly never had that before in this country. The IRA has transformed the landscape in a staggering way”.Georgia is part of a pattern where Republican-headed states have claimed the lion’s share of new renewable energy and electric vehicle activity since the legislation, with Republican-held Congressional districts hosting more than 80% of all utility-scale wind or solar farms and battery projects currently in advanced development, according to an analysis by American Clean Power.States blessed with plentiful wind and sunshine, along with significant rural and industrial communities, such as those across the Great Plains and the south, appear best positioned to capitalize on the climate bill. Texas, already a bastion of wind power, could see $131bn in IRA-linked investment this decade, Florida may see $62bn and Georgia $16bn, according to an RMI analysis.The irony of this bonanza, which is coming despite no Republican voting for the climate spending, was alluded to by Biden in his recent state of the union address. “My Republican friends who voted against it – I still get asked to fund the projects in those districts as well,” the US president said, to jeers from some members of Congress. “But don’t worry, I promised I’d be a president for all Americans. We’ll fund these projects and I’ll see you at the groundbreaking.”Beeswarm bubble chart of states’ IRA climate investmentsA mixed political groundbreaking did take place in Georgia in October, when Brian Kemp, the Republican governor, was served champagne by a robotic dog before ceremonially shoveling dirt alongside Democratic senators Raphael Warnock and Jon Ossoff to kick off Hyundai’s first dedicated electric vehicle plant in the US.The $5.5bn facility in Bryan county, which will create around 8,000 jobs when it opens in 2025, came about because “we heard the clarion call of this administration to hasten the adoption of new electric vehicles and reduce carbon emissions”, according to José Muñoz, Hyundai’s global president.Ossoff told the Guardian he has long held a vision that Georgia “should be the advanced energy innovation and manufacturing hub for the US” and credits a bill he wrote, the Solar Energy Manufacturing for America Act, which was then folded into the IRA, for helping convince Hanwha Qcells, another South Korean-owned company, to commit $2.5bn for two new solar panel factories in the state in January.“This targeted legislation was by no means a foregone conclusion but passing it has opened the floodgates in Georgia,” Ossoff said. Democrats have touted the bill for not only helping tackle the climate crisis but also as a way to wrest the initiative from China, which has dominated the manufacturing of parts for clean energy systems and electric cars until now.Georgia’s embrace of clean energy technology was underway before the IRA, with Atlanta, bolstered by leading renewables research at Georgia Tech, increasingly viewed as an innovative fulcrum. In 2021, Freyr, a Norwegian company, announced a $1.7bn battery plant for Coweta county, south of Atlanta, while SK Battery, yet another South Korean-owned firm, said last spring it will hire another 3,000 workers at its battery factory in Commerce, north-east of Georgia’s capital.Rivian, the electric car company, meanwhile is keen to build a sprawling $5bn facility east of Atlanta although it has faced opposition from some residents in the small town of Rutledge, who have sued to stop the development.But last year’s IRA, with its sweeping tax incentives for emissions-reducing technologies, has made the environment even more enticing. Scott Moskowitz, head of market strategy for Qcells said that Georgia has been a “great home” since 2019 but that the IRA is “some of the most ambitious clean energy policy passed anywhere in the world” and gave the Hanwha-owned company certainty to triple capacity at its site in Dalton, which already cranks out around 12,000 solar panels a day, as well as create a new complex in Cartersville that will manufacture ingots and wafers, the basic building blocks of solar panel components, made from poly silicon.“There’s a ton of opportunity and excitement in [the] clean energy sector right now,” Moskowitz said. “We’ve always had strong support from both sides of the aisle, even if there hasn’t always been agreement.”Map of recently announced clean energy projects in GeorgiaBarry Loudermilk, a Republican congressman whose House of Representatives district includes Cartersville, denied that the rush of investment is politically awkward for the GOP, accusing Biden of an “elementary school-level response” to the issue in his state of the union speech.“I’m not against this industry and I’m all about bringing in new technology, but it has to be market-driven,” Loudermilk told the Guardian. “When the government heavily subsidizes something it will crest and then fall down because the market hasn’t matured.“We aren’t ready for this (full EV and clean energy adoption). This is just subsidizing one industry over another and just throwing taxpayer dollars at something usually just leads to failure, and sets you back a decade.”Georgia is a draw for businesses due to its relatively low tax rate, transport links -including Atlanta’s busy airport and Savannah’s deep port – and a diverse and adept pool of workers, according to Loudermilk. “The days of the backwoods country bumpkin are in the past, we have educated, skilled workforce,” he said.It’s uncertain whether Loudermilk will be at the Cartersville groundbreaking, nor Marjorie Taylor Greene, the far-right extremist who represents the neighboring congressional district that includes Dalton. Greene has previously said the IRA is an “energy disaster” and erroneously said that global heating is “actually healthy for us”, although she has said she welcomes any new jobs to Georgia.Warned of ‘massive’ climate-led extinction, a US energy firm funded crisis denial adsRead moreKemp, meanwhile, has offered state-level incentives for firms to set up in Georgia, while denouncing Democrats for “picking winners and losers” with the national climate bill. The governor recently pitched his state as a destination for clean tech investment at Davos and has denied any hypocrisy in his stance.“Georgia is a destination state for all manner of new jobs and opportunity despite the bad policies coming out of DC – not because of them,” said a spokesman for Kemp. “Companies are choosing Georgia over places like New York and California because they know they’ll find success here, not because of the IRA.”Even if the causes for the renewables investment are in dispute, the trajectory of the transition is becoming more undeniable. As the cost of renewables continues to plummet and more Americans turn to electric cars, thanks in part to the “unprecedented scale” of the IRA, partisan divides on the issue may soften, according to Ashna Aggarwal, an associate at RMI, the energy research nonprofit.“This is a bill that benefits everyone and it actually benefits the people who weren’t necessarily in favor of the bill the most,” Aggarwal said.“I think what’s really exciting about the clean energy economy is that party lines don’t really matter here. There’s more opportunity for Republican states and I hope that Republican policymakers see that and really think this is good for the people who are living in our states.”TopicsRenewable energyEnergyClimate crisisGeorgiaUS politicsBiden administrationEnergy industryfeaturesReuse this content More

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      Democrat senators call for a freeze on arms sales to Saudi Arabia amid oil production cuts – video

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      Two Democrat senators have called for a freeze on arms sales to Saudi Arabia unless it reverses a Riyadh-led Opec+ decision to cut oil production. They said the decision to reduce production would help Russia’s war in Ukraine. 
      ‘The only apparent purpose of this cut in oil supplies is to help the Russians and harm Americans. It was unprovoked and unforced, as an error,’ the Connecticut senator, Richard Blumenthal, said. His statement was echoed by his Democrat colleague from California, Ro Khanna, who said: ‘When Americans are facing a crisis because of Putin, when we’re paying more at the pump, our ally, someone who we have helped for decades, should be trying to help the American people.’
      The Biden administration said it was reviewing its ties with the Gulf kingdom. 
      Speaking to CNN, however, a Saudi minister, Adel al-Jubeir, said: ‘Saudi Arabia does not politicise oil. We don’t see oil as a weapon. We see oil as our commodity. Our objective is to bring stability to the oil market.’ Riyadh is not partnering with Russia, he added

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      Workers are being punished for inflation. The real culprit is corporate greed | Robert Reich

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      Workers are being punished for inflation. The real culprit is corporate greedRobert ReichBig corporations are using inflation as cover to raise prices. Yet the US Federal Reserve is raising interest rates – further hurting Americans The US Federal Reserve is aiming its powerful firehose at the living room but it’s the forest that’s ablaze. As a result, people may drown even as their house catches fire.This about sums up the sorry state of inflation-fighting in America.On Wednesday, the Fed – America’s central bank – raised interest rates by three-quarters of a percentage point, and signaled more rate increases to come, perhaps as soon as September.This followed a quarter-point increase in March, another half a point in May, and three-quarters of a point in June.On Thursday, the commerce department announced that the US economy had shrunk for the second quarter in a row.While not technically a recession (economists in and out of the White House have spent much of the last several days deconstructing the word “recession”), there’s no question but that the US economy is slowing.This, to put it mildly, makes no sense.Inflation has broken out all over the world – the consequence of pent-up demand from more than two years of pandemic and of limited supplies of everything from computer chips to wheat, due to difficulties getting the world economy up and running.Add in Putin’s war in Ukraine driving up world energy and food prices, and China’s lockdowns against Covid, and you get a perfect conflagration.That’s not all. Big corporations are busily raising their prices because consumers have so little choice. Corporations are using inflation as cover.Prices at the gas pump have drifted down a bit in the last month but are still eye-popping. (Here in California, I’m paying over $6 a gallon.)At the same time, big oil has hit a gusher. Exxon just reported second-quarter profits of $17.9bn, more than three times what it earned a year ago. Chevron’s profit more than tripled to $11.6bn.The two giant American oil companies aren’t pouring their profits back into energy, green or otherwise. They’re buying back their shares of stock to reward investors and executives.Or consider giant corporations selling consumer staples, such as Proctor & Gamble (maker of everything from Gillette razors to Tide detergent).On Friday, P&G reported another quarter of rising profits despite the increasing costs of raw materials and transportation. How did it manage this feat? By raising its prices even more.Meanwhile, half of the recent rise in grocery prices is from beef, pork and poultry. Just four large conglomerates control these markets, and they’ve been coordinating their price increases to score large profits – here again, using “inflation” as an excuse.If markets were competitive, companies would keep their prices down to prevent competitors from grabbing away customers. But they’re raising prices even as they rake in record profits.The Fed’s firehose is hitting none of this.Meanwhile, we’re told not to worry because the labor market is doing just fine.Rubbish.There are two aspects to the labor market – jobs and wages. The number of jobs has been increasing nicely. Let’s hope this continues. But hourly wages have plummeted, when adjusted for inflation.If the Fed keeps raising interest rates – even if the national economy avoids an official “recession” – most workers will fall even further behind.The living standards of nearly everyone who borrows money are already dropping. Because of the Fed’s rate hikes, the average rate on credit card debt has reached 17.25% (up from 16.34% in March, before the Fed began raising interest rates). Rates on student loans, car loans and mortgages are also rising.The government should use a firehose better aimed at the conflagration, which won’t so badly burden the bottom 80%.For starters, impose a temporary windfall profits tax on big oil, on giant sellers of consumer staples and on big ag. This would reduce their incentive to engage in price gouging.Bolder antitrust enforcement – even the threat to block mergers and break up giant companies – could also reduce their ardor to raise prices.If Congress refuses to allow the government to use its bargaining power to reduce the prices of pharmaceuticals, big pharma is a good candidate for temporary price controls. (FDR controlled prices via executive order.)Finally, higher taxes on the wealthy – such as Democrats seem finally ready to enact – will help dampen total demand, thereby dousing some of the inflation fire.The Fed’s single tool for fire-fighting – interest-rate increases – is aimed in the wrong direction. It’s hitting working people rather than corporations responsible for most price increases (over and above the rising costs of global supplies).We need to fight rising prices, not working people.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
      TopicsUS economyOpinionInflationFederal ReserveUS politicsOil and gas companiesEnergy industrycommentReuse this content More

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      Democrats announce plans to ‘go after’ big oil in effort to bring down prices

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      Democrats announce plans to ‘go after’ big oil in effort to bring down pricesNancy Pelosi says oil companies ‘hoarding the windfall while keeping prices high at the pump’ amid concerns over US inflation The Biden administration is to propose legislation that would allow US federal and state agencies to “go after” oil companies on wholesale and retail sales practices, lambasting the industry over price gouging and profiteering.As American voters express increasing concerns about the high prices of a wide range of consumer goods, including energy and food, Senate majority leader Chuck Schumer said passing legislation to bring down retail gasoline prices “is at the very top of our list”.‘We’re not attacking Russia,’ Biden says as he asks for $33bn in Ukraine aid – liveRead moreNeither Schumer nor House speaker Nancy Pelosi would say when such legislation will be voted upon, or how much money it could end up saving consumers if enacted into law.“Big oil has profiteered and exploited the marketplace,” Pelosi told reporters, noting companies’ strong corporate profits over the past year. “They are hoarding the windfall while keeping prices high at the pump,” she added.The move comes as gas prices have surged in the wake of Russia’s invasion of Ukraine. Despite recent falls, the average price of a gallon of gas is now over $4 in the US, up from $2.88 a year ago, according to the American Automobile Association.Oil companies have enjoyed record profits as prices have soared. Exxon, the largest US oil company, is expected to report record earnings on Friday and rival Chevron recently reported “the best two quarters the company has ever seen”.Pelosi said the White House had discussed a “holiday” for Federal gas taxes but said that there was no evidence that oil companies would pass those savings on to consumers.Oil companies are not alone in reporting huge surges in profits even as consumers face higher bills thanks to soaring inflation. An analysis of 100 leading US companies found their net profits had risen by a median of 49%, and in one case by as much as 111,000%. The increases came even as prices rose and average wage increases were eroded by rising inflation.Reuters contributed to this storyTopicsOil and gas companiesUS politicsBiden administrationInflationEconomicsEnergy industrynewsReuse this content More

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      Big oil could bring US gas prices down but won’t – so hit it with a windfall tax | Robert Reich

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      Big oil could bring US gas prices down but won’t – so hit it with a windfall taxRobert ReichIn the US, in times of crisis, the poor pay the price and the rich cash in. Democrats know it doesn’t have to be this way This morning I filled my car with gas, costing almost six dollars a gallon. My car is a Mini Cooper I bought years ago, partly because it wasn’t a gas-guzzler. Now it’s guzzling dollars.Putin and Trump have convinced me: I was wrong about the 21st century | Robert ReichRead moreWhen I consider what’s happening in Ukraine, I say what the hell. It’s a small sacrifice.Yet guess who’s making no sacrifice at all – in fact, who’s reaping a giant windfall from this crisis?Big oil has hit a gusher. Even before Vladimir Putin’s war, oil prices had begun to rise due to the recovery in global demand and tight inventories.Last year, when Americans were already struggling to pay their heating bills and fill up their gas tanks, the biggest oil companies (Shell, Chevron, BP, and Exxon) posted profits totaling $75bn. This year, courtesy of Putin, big oil is on the way to a far bigger bonanza.How are the oil companies using this windfall? I can assure you they’re not investing in renewables. They’re not even increasing oil production.As Chevron’s top executive, Mike Wirth, said in September, “We could afford to invest more” but “the equity market is not sending a signal that says they think we ought to be doing that.”Translated: Wall Street says the way to maximize profits is to limit supply and push up prices instead.So they’re buying back their own stock in order to give their stock prices even more of a boost. Last year they spent $38bn on stock buybacks – their biggest buyback spending spree since 2008. This year, thanks largely to Putin, the oil giants are planning to buy back at least $22bn more.Make no mistake. This is a direct redistribution from consumers who are paying through the nose at the gas pump to big oil’s investors and top executives (whose compensation packages are larded with shares of stock and stock options).Though it’s seldom discussed in the media, lower-income earners and their families bear the brunt of the burden of higher gas prices. Not only are lower-income people less likely to be able to work from home, they’re also more likely to commute for longer distances between work and home in order to afford less expensive housing.Big oil companies could absorb the higher costs of crude oil. The reason they’re not is because they’re so big they don’t have to. They don’t worry about losing market share to competitors. So they’re passing on the higher costs to consumers in the form of higher prices, and pocketing record profits.It’s the same old story in this country: when crisis strikes, the poor and working class are on the frontlines while the biggest corporations and their investors and top brass rake it in.What to do? Hit big oil with a windfall profits tax.The European Union recently advised its members to seek a windfall profits tax on oil companies taking advantage of this very grave emergency to raise their prices.Democrats just introduced similar legislation here in the US. The bill would tax the largest oil companies, which are recording their biggest profits in years, and use the money to provide quarterly checks to Americans facing sticker shock as inflation continues to soar.It would require oil companies producing or importing at least 300,000 barrels of oil per day to pay a per-barrel tax equal to half the difference between the current price of a barrel and the average price from the years 2015 to 2019.This is hardly confiscatory. Those were years when energy companies were already recording large profits. Quarterly rebates to consumers would phase out for individuals earning more than $75,000 or couples earning $150,000.Republicans will balk at any tax increase on big oil, of course. They and the coal-industry senator Joe Manchin even tanked the nomination of Sarah Bloom Raskin to the Fed because she had the temerity to speak out about the systemic risks that climate change poses to our economy.But a windfall profits tax on big oil is exactly what Democrats must do to help average working people through this fuel crisis. It’s good policy, it’s good politics and it’s the right thing to do.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
      TopicsOil and gas companiesOpinionOilCommoditiesEnergy industryUkraineRussiaUS domestic policycommentReuse this content More