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The Department of Energy “must invest in American-made clean aluminum” to retain and create manufacturing jobs, reduce industrial emissions, and expand a vitally important industry, according to a letter sent to US Department of Energy (DOE) Secretary Jennifer Granholm.
Among “not without abundant self-interested signatories” of the just revealed note are Ford, General Motors, Rivian and SunPower, as well as some large beer and soft drink makers who use but don’t always support the recycling of aluminum cans. They want money from the Inflation Reduction Act (IRA) to expand and secure an affordable supply of clean energy.*
President Biden’s Inflation Reduction Act, the most ambitious climate law in US history is a core pillar of Bidenomics and the President’s Investing in America Agenda. Since the legislation was signed into law, EPA has put an historic $41 billion to work to reduce emissions, build a clean economy, lower energy costs for American households and businesses, create some good-paying union jobs, and perhaps advance environmental justice across the country.
However, “On the minus side, however, the IRA has no requirements for these massively subsidized companies to do good by their production workers. There are no market-based wage or benefit requirements, nothing that mandates company leaders to pay workers a wage to support themselves or their families – even though the 45X credit on its own is enough to completely cover these companies’ capital investment costs and their total wage bill for the first several years of production. Fortunately, states and communities can take action to ensure this pivotal moment doesn’t turn into another boondoggle for the One Percent,” according to Good Jobs First.** (AutoInformed: Inflation Reduction Act Birthday – Changes Needed)
The aluminum industry’s reliance on fossil fuels and lack of progress on renewable energy has put its future in danger. Power accounts for ~40% of US. smelters’ total production costs. Smelters in red states with climate change denying leadership such as Kentucky and Indiana said high energy costs due to volatile fossil fuel prices necessitated curtailing operations last year.
Rather than allow smelters to become priced out, the federal government can secure low-cost electricity supplies in the short term while investing in long-term supplies of cheap, renewable energy. The current Republican list of presidential contenders or wanna-be’s are all against taking climate change actions.
The letter was published on a website and in full page ads in five newspapers: The Albany Times-Union, The St. Louis Post-Dispatch, The Louisville Courier-Journal, the South Carolina Post and Courier, and the Indianapolis Star. Not coincidentally each newspaper is in a market with one of the remaining six primary aluminum smelters. The letter was also accompanied by a digital ad campaign and mobile takeover on Politico. The power of big special interest money is once again in play, and at least this time subject to public scrutiny and challenges by some as socialism or woke-ism for the one-percenters.
*Dear Secretary Granholm,
“America needs a reliable supply of domestically produced clean aluminum. As significant buyers of primary aluminum, we strongly support federal investments via the Inflation Reduction Act (IRA) to ensure that the United States will be a leader in producing this critical material, which is essential to America’s economic growth.
“Today, primary aluminum production in the United States is in crisis. While global demand for primary aluminum is forecast to grow over the coming decades, domestic primary aluminum production has continued to decline and is at risk of disappearing. Spiking electricity prices, lack of access to low-cost renewable energy, and insufficient federal investment have pushed the remaining six primary smelters to the brink.
“The IRA is poised to make the largest-ever investment in US manufacturing, supercharging aluminum-dependent clean energy technologies. To realize the potential of the IRA, U.S. aluminum demand from wind and solar alone is forecasted to exceed all current aluminum consumption. In order to meet increased aluminum demand that will affect all our industries, the US must invest heavily in supply.
“The Department of Energy has a once in a generation opportunity to retain and create manufacturing jobs, help reduce US industry emissions to meet our climate goals, and grow and sustain an American industry in the interest of national security. We urge you and the Department of Energy to prioritize decarbonization of primary aluminum, and the deployment of low-cost carbon-free energy that the industry critically needs to produce clean aluminum as you implement the Inflation Reduction Act.
“Sincerely,
- Alternate Energy Technologies
- Ball Corporation
- Ford Motor Company
- GM
- Golden Aluminum
- Oakland United Beerworks
- Olipop
- PepsiCo
- Rivian
- Shacksbury Cider
- Sierra Nevada Brewing Co.
- SunEarth
- SunPower
- TS Conductor”
**Good Jobs First Observations
- The IRA doesn’t require companies to locate in, for example, historically neglected communities or in towns that once had a robust manufacturing base. Electric vehicle companies are clearly favoring the South: Volkswagen in Chattanooga, TN.; BMW in Spartanburg, SC.; Nissan in Canton, MS.; Toyota in Georgetown, KY.; Hyundai in Bryan County and Rivian in Morgan County, GA; VinFast in Chatham County, NC.
- All six of these are right-to-work states, where workers’ rights, pay and protections are fewer. All of these also have no state minimum wage above the federal minimum wage of $7.25 ,which despite soaring housing, energy, and food costs, has remained unchanged since 2009.
Good Jobs First Recommendations
- States and local governments should demand more from battery makers seeking economic development subsidies.
- Production worker wage requirements should set a floor at market rates – and not get away with giving us “average” wages artificially inflated by executive salaries.
- ALL tax credits and exemptions, grants, and loans, should be performance-based, so that companies don’t get their subsidy until they deliver. If they fall short on jobs, wages, or investments, strong clawbacks or money-back guarantees should ensure they repay taxpayers.
- Cap EV and battery-plant subsidies at $35,000 per job.
- Attach robust Job Quality Standards that ensure at least market-rate wages and benefits (with living-wage floors), tied to inflation.
- Use the federal subsidies to reduce the burden on local residents – for every dollar a car’s manufacturing is subsidized by state or local incentives, subtract a dollar from the federal purchase credit (or from any applicable state credit or other inducement).
- Focus on helping incumbent workers and communities currently dependent upon internal-combustion engine vehicles retool and adapt.
Automakers Want US Taxpayer Subsidies for Aluminum
Click for more information.
The Department of Energy “must invest in American-made clean aluminum” to retain and create manufacturing jobs, reduce industrial emissions, and expand a vitally important industry, according to a letter sent to US Department of Energy (DOE) Secretary Jennifer Granholm.
Among “not without abundant self-interested signatories” of the just revealed note are Ford, General Motors, Rivian and SunPower, as well as some large beer and soft drink makers who use but don’t always support the recycling of aluminum cans. They want money from the Inflation Reduction Act (IRA) to expand and secure an affordable supply of clean energy.*
President Biden’s Inflation Reduction Act, the most ambitious climate law in US history is a core pillar of Bidenomics and the President’s Investing in America Agenda. Since the legislation was signed into law, EPA has put an historic $41 billion to work to reduce emissions, build a clean economy, lower energy costs for American households and businesses, create some good-paying union jobs, and perhaps advance environmental justice across the country.
However, “On the minus side, however, the IRA has no requirements for these massively subsidized companies to do good by their production workers. There are no market-based wage or benefit requirements, nothing that mandates company leaders to pay workers a wage to support themselves or their families – even though the 45X credit on its own is enough to completely cover these companies’ capital investment costs and their total wage bill for the first several years of production. Fortunately, states and communities can take action to ensure this pivotal moment doesn’t turn into another boondoggle for the One Percent,” according to Good Jobs First.** (AutoInformed: Inflation Reduction Act Birthday – Changes Needed)
The aluminum industry’s reliance on fossil fuels and lack of progress on renewable energy has put its future in danger. Power accounts for ~40% of US. smelters’ total production costs. Smelters in red states with climate change denying leadership such as Kentucky and Indiana said high energy costs due to volatile fossil fuel prices necessitated curtailing operations last year.
Rather than allow smelters to become priced out, the federal government can secure low-cost electricity supplies in the short term while investing in long-term supplies of cheap, renewable energy. The current Republican list of presidential contenders or wanna-be’s are all against taking climate change actions.
The letter was published on a website and in full page ads in five newspapers: The Albany Times-Union, The St. Louis Post-Dispatch, The Louisville Courier-Journal, the South Carolina Post and Courier, and the Indianapolis Star. Not coincidentally each newspaper is in a market with one of the remaining six primary aluminum smelters. The letter was also accompanied by a digital ad campaign and mobile takeover on Politico. The power of big special interest money is once again in play, and at least this time subject to public scrutiny and challenges by some as socialism or woke-ism for the one-percenters.
*Dear Secretary Granholm,
“America needs a reliable supply of domestically produced clean aluminum. As significant buyers of primary aluminum, we strongly support federal investments via the Inflation Reduction Act (IRA) to ensure that the United States will be a leader in producing this critical material, which is essential to America’s economic growth.
“Today, primary aluminum production in the United States is in crisis. While global demand for primary aluminum is forecast to grow over the coming decades, domestic primary aluminum production has continued to decline and is at risk of disappearing. Spiking electricity prices, lack of access to low-cost renewable energy, and insufficient federal investment have pushed the remaining six primary smelters to the brink.
“The IRA is poised to make the largest-ever investment in US manufacturing, supercharging aluminum-dependent clean energy technologies. To realize the potential of the IRA, U.S. aluminum demand from wind and solar alone is forecasted to exceed all current aluminum consumption. In order to meet increased aluminum demand that will affect all our industries, the US must invest heavily in supply.
“The Department of Energy has a once in a generation opportunity to retain and create manufacturing jobs, help reduce US industry emissions to meet our climate goals, and grow and sustain an American industry in the interest of national security. We urge you and the Department of Energy to prioritize decarbonization of primary aluminum, and the deployment of low-cost carbon-free energy that the industry critically needs to produce clean aluminum as you implement the Inflation Reduction Act.
“Sincerely,
**Good Jobs First Observations
Good Jobs First Recommendations