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SUSTAINABILITY COMMITTEE
Meeting Date: 03/22/2021  
Subject:    DISCUSS options for a process that will facilitate an inclusive Just Transition and PROVIDE DIRECTION.
Submitted For: Jody London, Sustainability Coordinator
Department: Conservation & Development  
Referral No.: N/A  
Referral Name: N/A
Presenter: Jody London, DCD Contact: Jody London (925) 674-7871

Information
Referral History:
On September 22, 2020, the Board of Supervisors (Board) adopted a Climate Emergency Resolution that, among other things, resolves that the Board of Supervisors and the County Sustainability Commission seek input from the community, workers, and business/industry to help the County anticipate and plan for an economy that is less dependent on fossil fuels, helps plan for a “Just Transition” away from a fossil-fuel dependent economy, and considers how the County’s recovery from the COVID-19 pandemic can incorporate the County’s climate goals.

On November 20, 2020, the Board received a letter from 60 community organizations that commends the Board for the Climate Emergency Resolution and urges the Board to take several actions, described below. At its December 14, 2020, meeting the Sustainability Commission reviewed the November 20 letter. The Sustainability Commission recommended that the Board refer the letter to the Sustainability Committee for investigation and report back to the Board. On January 19, 2021, the Board referred this matter to the Sustainability Committee.
Referral Update:
As the Sustainability Committee considers options for addressing the issues raised in the letter, it should be aware of legislative proposals and procedural options that are related to the letter and could help shape how the County facilitates a Just Transition.

Federal Legislation

On March 8, 2021, Congressman Mark DeSaulnier announced an effort to create a model that will help transition our country’s economy off fossil fuels to cleaner, renewable energy while simultaneously supporting workers, communities, and state and local governments. The model will also create more investments in the transportation system, developing an inter-connected public transportation network and creating jobs.

As part of this effort, Congressman DeSaulnier announced three bills that will address this transition. The first bill, the Protecting Workers for a Clean Future Act, addresses the imminent market evolution to renewable, clean energy by providing direct support to local communities to convene industry, the local fossil fuel workforce whose jobs are at risk, and environmental groups to make a plan to transition workers to meaningful, sustainable work.

The second bill, the Jobs for a Carbon Free Transportation System Act, addresses the intersection of three of the biggest challenges our nation faces: climate change, outdated infrastructure, and job insecurity. The bill prioritizes and invests in state-of-the-art transportation system reforms that would improve mobility and reduce greenhouse gas emissions by developing low-carbon, efficient, inter-connected, and smart transportation corridors while creating union jobs. With the inevitable transition away from fossil fuels these improvements would have, it also supports workers to transition out of the fossil fuel industry and into meaningful, more secure work.

The third bill, the Clean Corridors Act, would launch a federal program that would accelerate the expansion of electric vehicle (EV) charging infrastructure to help reverse climate change and modernize our country’s infrastructure. Specifically, the Clean Corridors Act, which Congressman DeSaulnier also introduced in the 116th Congress, would direct $3 billion over the coming decade to construct and install infrastructure to support technologies like hydrogen fuel cell and electric battery-powered vehicles.

State Legislation

Assemblymember Tim Grayson has introduced Assembly Bill 844, which would create a Green Empowerment Zone that includes the Northern Waterfront Area of Contra Costa County and the corresponding area in Solano County. This Green Empowerment Zone would be governed by a Board that includes representatives from cities in Contra Costa and Solano Counties as well as state agencies and commissions and other stakeholders. As currently written, this Board would identify projects and programs that will best utilize public funds and most quickly improve the economic vitality of these areas, work with the corresponding state and federal delegations, partner with high education institutions, and produce an annual report to the Legislature. See AB 844 at https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB844.

Governor

Governor Newsom on September 23, 2020, issued Executive Order N-79-20. This Executive Order (attached) among other things orders the California Labor and Workforce Development Agency and Office of Planning and Research to develop a Just Transition Roadmap. It orders the California Environmental Protection Agency and Natural Resources Agency to expedite regulatory processes to repurpose and transition oil production facilities while supporting community participation, labor standards, and protection of public health, safety, and the environment.

Procedural Options for Contra Costa County


The letter to which the Committee has been asked to respond has three requests:
  1. secure commitments from Marathon and Phillips 66 to cover direct and indirect costs associated with downsizing and ultimate decommissioning of their refineries in Contra Costa County, and to pay their fair share of the costs for just transitions for workers and communities;
  2. pass an ordinance or resolution that aims to establish financial accountability requirements for refineries and other fossil fuel infrastructure; and
  3. strongly advocate for state action supporting just transitions for fossil fuel workers and communities, as well as full site cleanups to unrestricted use.

Regarding (1), both Marathon and Phillips 66 have applications pending with the County for approval to retool their refineries to process renewable fuel. The commitments recommended in the letter can be evaluated in the context of those applications.

Regarding (2), the letter specifically recommends the County look at ordinances passed by King County, Washington and Multnomah County, Oregon as potential models. It also recommends the State of Colorado’s August 2020 Draft Just Transition Plan to assist dislocated coal workers and affected communities. The Colorado Plan makes recommendations in three areas: workers, communities, and fiscal issues. These may be useful organizing concepts for Contra Costa County to consider.

The letter also recommends the County look at the decommissioning plan for the Diablo Canyon Nuclear Power Plant in San Luis Obispo County. On March 5, 2021, REACH, an economic development group in San Luis Obispo County, announced a memorandum of understanding between nine groups, including Cal Poly, The Land Conservancy of San Luis Obispo County, the nonprofit yak tit?u tit?u yak tilhini Northern Chumash Cultural Preservation Kinship, the Tri-Counties Building and Construction Trades Council, San Luis Obispo, and elected officials. The goal is to align interests and develop a shared vision for the process of decommissioning the power plant and developing future uses. At a press conference, parties expressed great interest in developing clean energy resources and using existing electricity transmission infrastructure.

Regarding (3), the County‘s State and Federal legislative platforms already name, among other things, “study the economic, workforce, and social impacts of transitioning away from fossil fuels” and “Support legislative actions to evaluate, clean up, and redevelop contaminated sites.”

The Committee should consider directing staff to prepare a summary of processes that other government entities have used when faced with loss of a major economic sector. The Committee also should consider conducting study sessions of the Board with experts on decommissioning, workforce development and labor, community benefits, land reuse, and related topics. The California Office of Planning and Research (OPR) may be a resource for the County to include in any study sessions because of the guidance it is developing, which is scheduled to be released in July.
Recommendation(s)/Next Step(s):
DISCUSS options for a process that will facilitate an inclusive Just Transition and PROVIDE DIRECTION.
Fiscal Impact (if any):
None at this time.
Attachments
Letter from Community Groups re Just Transition
Executive Order N-79-20

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