OSHA Leaves Worker Safety in Hands of Industry

By New York Times


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Seven years ago, a Missouri doctor discovered a troubling pattern at a microwave popcorn plant in the town of Jasper. After an additive was modified to produce a more buttery taste, nine workers came down with a rare, life-threatening disease that was ravaging their lungs.

Puzzled Missouri health authorities turned to two federal agencies in Washington. Scientists at the National Institute for Occupational Safety and Health, which investigates the causes of workplace health problems, moved quickly to examine patients, inspect factories and run tests. Within months, they concluded that the workers became ill after exposure to diacetyl, a food-flavoring agent.

But the Occupational Safety and Health Administration, charged with overseeing workplace safety, reacted with far less urgency. It did not step up plant inspections or mandate safety standards for businesses, even as more workers became ill.

On Tuesday, the top official at the agency told lawmakers at a Congressional hearing that it would prepare a safety bulletin and plan to inspect a few dozen of the thousands of food plants that use the additive.

That response reflects OSHA’s practices under the Bush administration, which vowed to limit new rules and roll back what it considered cumbersome regulations that imposed unnecessary costs on businesses and consumers. Across Washington, political appointees — often former officials of the industries they now oversee — have eased regulations or weakened enforcement of rules on issues like driving hours for truckers, logging in forests and corporate mergers.

Since George W. Bush became president, OSHA has issued the fewest significant standards in its history, public health experts say. It has imposed only one major safety rule. The only significant health standard it issued was ordered by a federal court.

The agency has killed dozens of existing and proposed regulations and delayed adopting others. For example, OSHA has repeatedly identified silica dust, which can cause lung cancer, and construction site noise as health hazards that warrant new safeguards for nearly three million workers, but it has yet to require them.

“The people at OSHA have no interest in running a regulatory agency,” said Dr. David Michaels, an occupational health expert at George Washington University who has written extensively about workplace safety. “If they ever knew how to issue regulations, they’ve forgotten. The concern about protecting workers has gone out the window.”

Agency officials defend their performance, saying that workplace deaths and injuries have declined during their tenure. They have been considering new standards and revising outdated ones that were unduly burdensome on businesses, they said, adding that they have moved cautiously on new rules because those require extensive scientific and economic analysis.

“By the time the Bush administration is done — we have a good record already — we will have a better record,” said Edwin G. Foulke Jr., the agency’s head, in a recent interview.

On diacetyl, Mr. Foulke said “the science is murky” on whether the additive causes bronchiolitis obliterans, the disease that has been called “popcorn worker’s lung.” That claim is echoed by some industry officials, but a number of leading scientists and doctors agree with scientists at the national occupational safety institute that there is strong evidence linking the additive to the illness.

Without an OSHA standard, which would establish the permissible level of exposure for workers, companies can set any limit of exposure they want. Instead of regulations, Mr. Foulke and top officials at other agencies favor a “voluntary compliance strategy,” reaching agreements with industry associations and companies to police themselves.

Administration officials say such programs are less costly, allowing companies to hire more workers and keep consumer prices down. The number of voluntary agreements has grown in recent years, but they cover a fraction of the seven million work sites that OSHA oversees, or less than 1 percent of the work force. Sixty-one food plants out of the tens of thousands across the country participate; industry representatives say other businesses are taking steps to protect workers on their own.

Critics say the voluntary programs tend to have little focus on specific hazards and no enforcement power. Because only companies with strong safety records are eligible, they argue, the programs do not force less-conscientious businesses to improve their workplaces. A 2004 study by the Government Accountability Office found some promising results from such programs, but recommended against expanding them until their effectiveness could be assessed.

“OSHA has been focusing on the best companies in their voluntary protection program while doing nothing in the area of standard setting,” said Peg Seminario, the director of occupational safety and health at the A.F.L.-C.I.O. “They’ve simply gotten out of the standard-setting business in favor of industry partnerships that have no teeth.”

While labor organizations and public health experts argue that the agency has been lax in recent years, some industries have applauded its efforts. Construction companies, for example, are pleased that OSHA recently decided to relax the standards for handling explosives.

The agency had long been the target of businesses that criticized its rules as arbitrary, costly and confusing. Three of the biggest industries regulated by OSHA — transportation, agribusiness and construction — have given more than $630 million in political campaign contributions since 2000, with nearly three-quarters of that money going to Republicans. The Bush administration has promised to address their concerns.

“We’re also going to bring a transparency to the regulatory jungle that is unprecedented in the federal government,” Labor Secretary Elaine L. Chao told business owners in a speech on June 2002. “There are more words in the Federal Register describing OSHA regulations than there are words in the Bible. They’re a lot less inspired to read and a lot harder to understand. This is not fair.”

Until recently, Congress has provided no significant oversight of OSHA. With Democrats now back in control, House and Senate committees are holding hearings.

Among those who testified Tuesday was Eric Peoples, a former worker at the popcorn plant in Jasper, a small town 125 miles south of Kansas City. Once healthy, the 35-year-old Mr. Peoples has been told by doctors that he will need a double-lung transplant. Far from Washington, he finds the debate over the calculus of regulation — the costs to companies and consumers of upgrading workplaces versus the possible health benefits to workers — baffling.

“I can’t understand what it would take to get them to pass rules to make it safer to handle this stuff,” Mr. Peoples said, referring to diacetyl. “Something needs to be done.”

The Occupational Safety and Health Administration was created under President Richard M. Nixon in 1970 after Congressional hearings exposed dangerous workplace conditions. The agency was to set and enforce safety standards as well as detect health hazards before they could take a toll on workers. Since the agencyÂ’s creation, deaths and injuries on the job have steadily declined. Regulators have taken credit for much of that trend, though experts also cite pressure from insurers and lawsuits. Government records show that in 2005, more than 6,800 workplace-related deaths occurred, along with 4.2 million injuries and illnesses. OSHA officials say that since 2001, the fatality rate has declined by 7 percent and the injury rate by 19 percent.

Labor leaders and health experts say those numbers significantly undercount the problem, in part because the Bush administration has reduced the categories of recognized injuries and because many dangerous jobs are now performed by undocumented workers who do not report problems.

In one of his first acts in office, President Bush signed legislation repealing one of OSHAÂ’s most-debated accomplishments during the Clinton administration, an ergonomics standard intended to reduce injuries to factory, construction and office workers from repetitive motions and lifting. Business groups and manufacturers had lobbied against the measure, saying it would cost $100 billion to carry out.

By the end of 2001, OSHA had withdrawn more than a dozen proposed regulations. The agency, though, soon identified several safety priorities: rules on the hazards posed by dust from silica, used as a blasting agent, and noise from construction sites, which was causing a growing number of workers to suffer hearing loss. The agency has yet to produce either standard, though OSHA officials say they are working on them.

Mr. Foulke, the OSHA chief, has a history of opposing regulations produced by the agency he now leads. He has described himself as a “true Ronald Reagan Republican” who “firmly believes in limited government.” Before coming to Washington last year, Mr. Foulke, a former Republican Party state chairman in South Carolina and top political fund-raiser, worked in Greenville, S.C., for a law firm that advises companies on how to avoid union organizing. Representing the United States Chamber of Commerce, he had testified before Congress several times to promote voluntary OSHA compliance programs. He also opposed the ergonomics standards.

And as a member in the 1990s of an independent agency that reviews OSHA citations, he led a successful effort to weaken the agencyÂ’s enforcement authority.

Early in his tenure at OSHA, Mr. Foulke delivered a speech called “Adults Do the Darndest Things,” which attributed many injuries to worker carelessness. Large posters of workers’ making dangerous errors, like erecting a tall ladder close to an overhead wire, were displayed around him.

“Kids don’t always know what their parents do all day at work, but they instinctively understand the importance of them working safely,” he told the audience, which included children who had won a safety-poster contest. “In contrast, adults could stand to learn a thing or two. Looking at the posters, I was reminded of a couple examples of safety and health bloopers that are both humorous and horrible.”

Soon after Eric Peoples began working at the Jasper popcorn plant in 1997, he was thrilled to get a promotion: from the assembly line, which paid $6 to $7 an hour, to the mixing room, where he got more than $11 an hour to prepare ingredients.

Ten months later, Mr. Peoples recalled in a recent interview, he came down with a fever and chills. Doctors first said that Mr. Peoples, then 27, had pneumonia. When he did not improve, he saw a specialist who treated him for asthma. Still suffering from breathing problems, Mr. Peoples was hospitalized in St. Louis. After days of testing, doctors diagnosed bronchiolitis obliterans.

“My lung capacity had dropped to 18 percent,” Mr. Peoples said. He was told that there was no cure for the often-fatal disease and that he would likely need a double lung transplant to survive.

Some of his co-workers had similar health problems. A local lawyer whose mother had fallen ill showed the medical records of several workers to Dr. Allen Parmet, a former T.W.A. medical director who specializes in occupational hazards.

“It took me about 15 or 20 minutes to see there was a pattern,” said Dr. Parmet, who in his previous two decades in medicine had seen only three other cases of bronchiolitis obliterans. He contacted the Missouri Department of Health, which then notified the agencies in Washington. The Missouri officials noted that in addition to nine sick workers identified by Dr. Parmet, 20 to 30 current and retired workers had similar symptoms. All had been exposed to vapors from diacetyl, a compound found naturally in cheese, butter, milk and other foods. It is added for the buttery taste in microwave popcorn and widely used as a flavoring agent in other foods, like snacks and pastries.

Although Dr. ParmetÂ’s letter was the first that Washington learned of a possible problem with diacetyl, some companies had been aware of the health hazards. In late 1996, the Flavor and Extract Manufacturers Association heard from a company that a flavoring plant employee had developed bronchiolitis obliterans. Three years earlier, BASF, the German chemical maker, had found in animal studies that diacetyl caused severe respiratory problems.

After scientists from the national occupational safety institute visited the Jasper factory and examined the injured workers, the agency issued a bulletin in September 2001 saying “a work-related cause of lung disease” had occurred there. In December 2003, the agency issued an alert to more than 4,000 businesses, with tens of thousands of workers, that suggested safeguards.

OSHAÂ’s response was more limited. The agency sent an inspector to the Jasper plant, but he did not test the air, saying the companyÂ’s insurers had done an environmental sampling four years earlier. He concluded that the plant was in compliance with existing rules and closed the case.

Sixteen months later, a lawyer for ill workers filed a complaint with the agency. OSHA conducted a 40-minute inspection, but said it could do nothing more because there was no safety standard that established what level of diacetyl was acceptable. Since the first outbreak, OSHA has inspected three food and flavoring plants for links to popcorn workerÂ’s lung, and issued one citation, according to records provided to public health experts at George Washington University and the United Food and Commercial Workers International Union under the Freedom of Information Act.

Other workers have developed symptoms of the lung disease. Keith Campbell had worked at a Conagra microwave popcorn factory in Marion, Ohio, for two years when he got sick. He was then 44, but his doctors told him he had the lung capacity of an 80-year-old, Mr. Campbell said in an interview. He has extreme difficulty breathing, particularly in cold weather. “It’s affected my entire life,” he said.

Kenneth B. McClain, a lawyer at the Missouri firm that has represented Mr. Peoples and Mr. Campbell, said he had tried or settled more than 100 cases involving diacetyl and other flavorings and that more than 500 were still awaiting resolution in Illinois, Indiana, Iowa, Maryland, Missouri and Ohio.

At a two-week trial in March 2004, lawyers for the makers of diacetyl products — International Flavors and Fragrances and its subsidiary, Bush Boake Allen — maintained that the additive did not cause Mr. Peoples’s illness and that, in any event, the popcorn company had mishandled the substance. Jurors awarded Mr. Peoples $20 million. His case, like Mr. Campbell’s, was later settled for an undisclosed amount.

Melissa I. Sachs, a spokeswoman at International Flavors and Fragrances, based in New York, declined to comment on the cases. According to its latest annual report, the company has been sued by more than 150 workers in four states.

Health experts have not raised alarms about diacetyl vapors that are released when consumers make microwave popcorn. But they note that there is little science on the issue, and the Environmental Protection Agency has declined to make public the results of its studies.

There are no estimates of the costs of upgrading all plants that use the food additive to protect workers better. Some microwave popcorn companies, including the Gilster-Mary Lee Corporation plant in Jasper, have spent millions of dollars on better ventilation, respirators and other equipment.

Two industry groups — the Flavor and Extract Manufacturers Association and the Popcorn Board — have also become involved in resolving workplace problems, particularly as the lawsuits have mounted. The association has not expressed opposition to an OSHA standard; its officials say it is working with California regulators to develop one there.

But John Hallagan, the association’s general counsel, says the group is working with OSHA to reach a voluntary compliance agreement. “OSHA is doing the right things in addressing flavor-related health and safety issues,” Mr. Hallagan said in a recent e-mail message.

He said the agency had met with industry and health officials and had posted on a Web site possible health hazards associated with some flavorings.

In September 2002, OSHAÂ’s Kansas City office entered into an alliance with the Popcorn Board, which represents popcorn processors, to try to address safety problems. But that arrangement soon ended.

Last July, the United Food and Commercial Workers International Union and the International Brotherhood of Teamsters petitioned OSHA for an emergency temporary standard for diacetyl. Urging action, 42 doctors and scientists from institutions including Harvard, Yale, the Massachusetts Institute of Technology and Johns Hopkins, wrote to Ms. Chao, who oversees OSHA.

The agency responded by saying it was preparing a safety bulletin and would be monitoring diacetyl hazards at a few dozen popcorn plants, but not at the thousands of other food factories that use the additive. That has frustrated public health experts like Dr. Michaels, the George Washington University epidemiologist.

“Here you have one federal agency, Niosh, doing a great job exploring the science behind a problem and a second agency, OSHA, which is supposed to be moving forward with enforcement and standard setting, and they are not,” he said.

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"Kill the viability": big batteries to lose out from electricity grid rule change

AEMC Storage Charging Rules spark industry backlash as Tesla, Snowy Hydro, and investors warn transmission charges on batteries and pumped hydro could deter grid-scale storage, distort the National Electricity Market, and slow decarbonisation.

 

Key Points

AEMC Storage Charging Rules are proposals to bill grid storage for network use, shaping costs and investment.

✅ Charges apply when batteries draw power; double-charging concerns.

✅ Tesla and Snowy Hydro warn of reduced viability and delays.

✅ AEMO recommends exemptions; investors seek certainty.

 

Tesla, Snowy Hydro and other big suppliers of storage capacity on Australia’s main electricity grid warn proposed rule changes amount to a tax on their operations that will deter investors and slow the decarbonisation of the industry.

The Australian Energy Market Commission (AEMC) will release its final decision this Thursday on new rules for integrating batteries, pumped hydro and other forms of storage.

The AEMC’s draft decision, released in July, angered many firms because it proposed charging storage providers for drawing power, ignoring a recommendation by the Australian Electricity Market Operator (AEMO) that they be exempt.

Battery maker Tesla, which has supplied some of the largest storage to the National Electricity Market, said in a submission that the charges would “kill the commercial viability of all grid storage projects, causing inefficient investment in alternative network”, with consumers paying higher costs.

Snowy Hydro, which is building the giant Snowy 2 pumped storage project and already operates a smaller one, said in its submission the proposed changes if implemented would jeopardise investment.

“This is a major policy change, amounting to a tax on infrastructure critical to achieving a renewable future,” Snowy Hydro said.

AEMO itself argued it was important storage providers were not “disincentivised from connecting to the transmission network, as they generally provide a net benefit to the power system by charging at periods of low demand”.

Australia’s electricity grid faces economic and engineering challenges, similar to Ontario's storage push as it adjusts to the arrival of lower cost and also lower carbon alternatives to fossil fuels.

While rule changes are necessary to account for operators that can both draw from and supply power, how they are implemented can have long-lasting effects on the technologies that get encouraged or repelled, including control of EV charging issues, independent experts say.

“It doesn’t have to be this way,” said Bruce Mountain, director of the Victoria Energy Policy Centre. “In Britain, where the UK grid transformation is underway, the regulator dealing with the same issues has said that storage devices don’t pay the system charges when they withdraw electricity from the grid,” he said.

The prospect that storage operators will have to pay transmission charges could “drastically” affect their profitability since their business models rely on the difference between the price their pay for power and how much they can sell it for. Gas generators and network monopolies would benefit from the change, Mountain said.

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An AEMC spokesperson said the commission had consulted widely, including from those who objected to the payment for transmission access.

“The market is moving towards a future that will be increasingly reliant on energy storage to firm up the growing volume of renewable energy and deliver on the increasing need for critical system security services, with examples such as EVs supporting grid stability in California as the ageing fleet of thermal generators retire,” the spokesperson said, declining to elaborate on the final ruling before it is published.

“The regulatory framework needs to facilitate this transition as the energy sector continues to decarbonise,” the official said.

AusNet, which operates the Victorian energy transmission grid, said that while “technological neutrality is paramount for battery and hybrid unit connections to both the distribution and transmission networks,” it did not back charging storage access to networks in all cases.

“[Ausnet] supports a clear exemptions framework for energy storage providers,” a spokesperson said. “We recommend that batteries and other hybrid facilities should have transmission use of system charges waived if they provide a net benefit to network customers.”

We are not aware of anyone that supports the charging storage access to networks in all circumstances.

“Batteries and hybrid facilities that consume energy from the network should be provided no preferential treatment relative to other customers and generators.”

Jonathan Upson, a principal at Strategic Renewable Consulting, though, said the AEMC wants electricity flowing through batteries to be taxed twice to pay network charges – once when the electricity charges the battery and then again when the same electricity is sent out by the battery an hour or two later but this time with customers paying.

“The AEMC’s draft decision has the identical rationale for eliminating franking credits on all dividends, resulting in double taxing of company profits,” he said.

Christiaan Zuur, director of energy transformation at the Clean Energy Council, said that while much of AEMC’s draft proposal was constructive, “those benefits are either nullified or maybe even outweighed” by uncertainty over charges.

“Risk perception” will be important since potential newcomers won’t be sure of what charges they will pay to connect to the grid and existing operators could have their connection agreements reopened, Zuur said.

“Investors focus on the potential risk. It does factor through to the integral costs for projects,” he said.

The outcome of new charges may prompt more people to put batteries on their premises and draw power from their own solar panels, Mountain said, with rising EV adoption introducing new grid challenges, cutting their reliance on a centralised network.

“Ironically, it encourages customers to depend less and less on the grid,” he said. “It’s almost like the capture of the dominant interests playing out over time at their own expense.”

Separately, the latest edition of the Clean Energy Council Confidence Index shows leadership by state governments is helping to shore up investor appetite for investing in renewable energy amid 2021 electricity lessons even with higher 2030 emissions reduction goals from the federal government.

Overall, investor confidence increased by a point in the last six months – from 6.3 to 7.3 out of 10 – following strong commitments and policy development from state governments, particularly on the east coast, the council said.

“The results of this latest survey illustrate the economic value in policy that lowers the emissions footprint of our electricity generation, supporting regional centres and creating jobs. Investors recognise the opportunities created by limiting global temperature rise to 1.5 degrees,” said council chief executive Kane Thornton.

Among the states, NSW, Victoria and Queensland led in terms of positive investor sentiment.

Correction: this article was amended on 30 November. An earlier version stated Ausnet supported charging storage for network access. A spokesperson said it backed a waiver on charges if certain conditions are met.        

 

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New England Is Burning the Most Oil for Electricity Since 2018

New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.

 

Key Points

Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.

✅ Driven by dual-fuel switching amid high natural gas prices

✅ ISO-NE winter reliability rules encourage oil stockpiles

✅ Raises CO2 emissions despite coal retirements and renewables growth

 

New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets. 

Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.  

Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years. 

Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said. 

“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.

During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.

Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.

Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.

But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.

After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.

We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.

That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.

So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.

The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.

Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.

 

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Nelson, B.C. Gets Charged Up on a New EV Fast-Charging Station

Nelson DC Fast-Charging EV Station delivers 50-kilowatt DCFC service at the community complex, expanding EV infrastructure in British Columbia with FortisBC, faster than Level 2 chargers, supporting clean transportation, range confidence, and highway corridor travel.

 

Key Points

A 50 kW public DC fast charger in Nelson, BC, run by FortisBC, providing rapid EV charging at the community complex.

✅ 50 kW DCFC cuts charge time to about 30 minutes

✅ $9 per half hour session; convenient downtown location

✅ Funded by NRCan, BC government, and FortisBC

 

FortisBC and the City of Nelson celebrated the opening of Nelson's first publicly available direct current fast-charging (DCFC) electric vehicle (EV) station on Friday.

"Adopting EV's is one of many ways for individuals to reduce carbon emissions," said Mayor John Dooley, City of Nelson. "We hope that the added convenience of this fast-charging station helps grow EV adoption among our community, and we appreciate the support from FortisBC, the province and the federal government."

The new station, located at the Nelson and District Community Complex, provides a convenient and faster charge option right in the heart of the commercial district and makes Nelson more accessible for both local and out-of-town EV drivers. The 50-kilowatt station is expected to bring a compact EV from zero to 80 per cent charged in about a half an hour, as compared to the four Level-2 charging stations located in downtown Nelson that require from three to four hours. The cost for a half hour charge at the new DC fast-charging station is $9 per half hour.

This fast-charging station was made possible through a partnership between FortisBC, the City of Nelson, Nelson Hydro, the Province of British Columbia and Natural Resources Canada. As part of the partnership, the City of Nelson is providing the location and FortisBC will own and manage the station.

This is the latest of 12 fast-charging stations FortisBC has built over the last year with support from municipalities and all levels of government, and adds to the five FortisBC-owned Kootenay stations that were opened as part of the accelerate Kootenays initiative in 2018.

All 12 stations were 50 per cent funded by Natural Resources Canada, 25 per cent by BC Ministry of Energy, Mines and Petroleum Resources and the remaining 25 per cent by FortisBC. The funding is provided by Natural Resources Canada's Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative, which aims to establish a coast-to-coast network of fast-chargers along the national highway system, natural gas refueling stations along key freight corridors and hydrogen refueling stations in major metropolitan areas. It is part of the Government of Canada's more than $180-billion Investing in Canada infrastructure plan. The Government of British Columbia is also contributing $300,000 towards the fast-chargers through its Clean Energy Vehicle Public Fast Charging Program.

This station brings the total DCFC chargers FortisBC owns and operates to 17 stations across 14 communities in the southern interior. FortisBC continues to look for opportunities to expand this network as part of its 30BY30 goal of reducing emissions from its customers by 30 per cent by 2030. For more information about the FortisBC electric vehicle fast-charging network, visit: fortisbc.com/electricvehicle.

"Electric vehicles play a key role in building a cleaner future. We are pleased to work with partners like FortisBC and the City of Nelson to give Canadians greener options to drive where they need to go, " said The Honourable Seamus O'Regan, Canada's Minister of Natural Resources.

"Nelson's first public fast-charging EV station increases EV infrastructure in the city, making it easier than ever to make the switch to cleaner transportation. Along with a range of rebates and financial incentives available to EV drivers, it is now more convenient and affordable to go electric and this station is a welcome addition to our EV charging infrastructure," said Michelle Mungall, BC's Minister of Jobs, Economic Development and Competitiveness, and MLA for Nelson Creston.

"Building the necessary DC fast-charging infrastructure, such as the Lillooet fast-charging site in British Columbia, close to highways and local amenities where drivers need them most is a critical step in growing electric vehicle adoption. Collaborations like this are proving to be an effective way to achieve this, and I'd like to thank all the program partners for their commitment in opening this important station, " said Mark Warren, Director of Business Innovation, FortisBC.

 

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Alberta Carbon tax is gone, but consumer price cap on electricity will remain

Alberta Electricity Rate Cap stays despite carbon tax repeal, keeping the Regulated Rate Option at 6.8 cents/kWh. Levy funds cover market gaps as the UCP reviews NDP policies to maintain affordable utility bills.

 

Key Points

Program capping RRO power at 6.8 cents/kWh, using levy funds to offset market prices while the UCP reviews policy.

✅ RRO cap fixed at 6.8 cents/kWh for eligible customers

✅ Levy funds pay generators when market prices exceed the cap

✅ UCP reviewing NDP policies to ensure affordable rates

 

Alberta's carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — is staying in place for now.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour under new electricity rules set by the province.

"The Regulated Rate Option cap of 6.8 cents/kWh was implemented by the previous government and currently remains in effect. We are reviewing all policies put in place by the former government and will make decisions that ensure more affordable electricity rates for job-creators and Albertans," said a spokesperson for Alberta's energy ministry in an emailed statement.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less, though some Alberta ratepayers have faced deferral-related arrears.

If the actual market price rises above that, the difference is paid to generators directly from levy funds, a buffer that matters as experts warn prices are set to soar later this year.

The government has paid more than $55 million to utilities over the past year ending in March 2019, due to that electricity price cap being in place.

Alberta Energy says the price gap program will continue, at least for the time being, amid electricity policy changes being considered.

 

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Volkswagen's German Plant Closures

VW Germany Plant Closures For EV Shift signal a strategic realignment toward electric vehicles, sustainability, and zero-emission mobility, optimizing manufacturing, cutting ICE capacity, boosting battery production, retraining workers, and aligning with the Accelerate decarbonization strategy.

 

Key Points

VW is shuttering German plants to cut ICE costs and scale EV output, advancing sustainability and competitiveness.

✅ Streamlines operations; reallocates capital to EV platforms and batteries.

✅ Cuts ICE output, lowers emissions, and boosts clean manufacturing capacity.

✅ Retrains workforce amid closures; invests in software and charging tech.

 

Volkswagen (VW), one of the world’s largest automakers, is undergoing a significant transformation with the announcement of plant closures in Germany. As reported by The Guardian, this strategic shift is part of VW’s broader move towards prioritizing electric vehicles (EVs) and adapting to the evolving automotive market as EVs reach an inflection point globally. The decision highlights the company’s commitment to sustainability and innovation amid a rapidly changing industry landscape.

Strategic Plant Closures

Volkswagen’s decision to close several of its plants in Germany marks a pivotal moment in the company's history. These closures are part of a broader strategy to streamline operations, reduce costs, and focus on the production of electric vehicles. The move reflects VW’s response to the growing demand for EVs and the need to transition from traditional internal combustion engine (ICE) vehicles to cleaner, more sustainable alternatives.

The affected plants, which have been key components of VW’s manufacturing network, will cease production as the company reallocates resources and investments towards its electric vehicle programs. This realignment is aimed at improving operational efficiency and ensuring that VW remains competitive in a market that is increasingly oriented towards electric mobility.

A Shift Towards Electric Vehicles

The closures are closely linked to Volkswagen’s strategic shift towards electric vehicles. The automotive industry is undergoing a profound transformation as governments and consumers place greater emphasis on sustainability and reducing carbon emissions. Volkswagen has recognized this shift and is investing heavily in the development and production of EVs as part of its "Accelerate" strategy, anticipating widespread EV adoption within a decade across key markets.

The company’s commitment to electric vehicles is evident in its plans to launch a range of new electric models and increase production capacity for EVs. Volkswagen aims to become a leader in the electric mobility sector by leveraging its technological expertise and scale to drive innovation and expand its EV offerings.

Economic and Environmental Implications

The closure of VW’s German plants carries both economic and environmental implications. Economically, the move will impact the workforce and local economies dependent on these manufacturing sites. Volkswagen has indicated that it will work on providing support and retraining opportunities for affected employees, as the EV aftermarket evolves and reshapes service needs, but the transition will still pose challenges for workers and their communities.

Environmentally, the shift towards electric vehicles represents a significant positive development. Electric vehicles produce zero tailpipe emissions, which aligns with global efforts to combat climate change and reduce air pollution. By focusing on EV production, Volkswagen is contributing to the reduction of greenhouse gas emissions and supporting the transition to a more sustainable transportation system.

Challenges and Opportunities

While the transition to electric vehicles presents opportunities, it also comes with challenges. Volkswagen will need to manage the complexities of closing and repurposing its existing plants while ramping up production at new or upgraded facilities dedicated to EVs. This transition requires substantial investment in new technologies, infrastructure, and training, including battery supply strategies that influence manufacturing footprints, to ensure a smooth shift from traditional automotive manufacturing.

Additionally, Volkswagen faces competition from other automakers that are also investing heavily in electric vehicles, including Daimler's electrification plan outlining the scope of its transition. To maintain its competitive edge, VW must continue to innovate and offer attractive, high-performance electric models that meet consumer expectations.

Future Outlook

Looking ahead, Volkswagen’s focus on electric vehicles aligns with broader industry trends and regulatory pressures. Governments worldwide are implementing stricter emissions regulations and providing incentives for EV adoption, although Germany's plan to end EV subsidies has sparked debate domestically, creating a favorable environment for companies that are committed to sustainability and clean technology.

Volkswagen’s investment in electric vehicles and its strategic realignment reflect a proactive approach to addressing these trends. The company’s ability to navigate the challenges associated with plant closures and the transition to electric mobility will be critical, especially as Europe's EV slump tests demand signals, in determining its success in the evolving automotive landscape.

Conclusion

Volkswagen’s decision to close several plants in Germany and focus on electric vehicle production represents a significant shift in the company’s strategy. While the closures present challenges, they also highlight Volkswagen’s commitment to sustainability and its response to the growing demand for cleaner transportation solutions. By investing in electric vehicles and adapting its operations, Volkswagen aims to lead the way in the transition to a more sustainable automotive future. As the company moves forward, its ability to effectively manage this transition will be crucial in shaping its role in the global automotive market.

 

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Bruce Power awards $914 million in manufacturing contracts

Bruce Power Major Component Replacement secures Ontario-made nuclear components via $914M contracts, supporting refurbishment, clean energy, low-cost electricity, and advanced manufacturing, extending reactor life to 2064 while boosting jobs, supply chain growth, and economy.

 

Key Points

A refurbishment program investing $914M in advanced manufacturing to extend reactors and deliver low-cost, clean power.

✅ $914M Ontario-made components for steam generators, tubes, fittings

✅ Extends reactor life to 2064; clean, low-cost electricity for Ontario

✅ Supports 22,000 jobs annually; boosts supply chain and economy

 

Today, Bruce Power signed $914 million in advanced manufacturing contracts for its Major Component Replacement, which gets underway in 2020, as the reactor refurbishment begins across the site and will allow the site to provide low-cost, carbon-free electricity to Ontario through 2064.

The Major Component Replacement (MCR) Project agreements include:

  • $642 million to BWXT Canada Inc. for the manufacturing of 32 steam generators to be produced at BWXT’s Cambridge facility.
  • $144 million to Laker Energy Products for end fittings, liners and flow elements, which will be manufactured at its Oakville location.
  • $62 million to Cameco Fuel Manufacturing, in Cobourg, for calandria tubes and annulus spacers for all six MCRs.
  • $66 million for Nu-Tech Precision Metals, in Arnprior, for the production of zirconium alloy pressure tubes for Units 6 and 3.

 

Bruce Power’s Life-Extension Program, which started in January 2016 with Asset Management Program investments and includes the MCRs on Units 3-8, remains on time and on budget.”

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By signing these contracts today, we have secured ‘Made in Ontario‘ solutions for the components we will need to successfully complete our MCR Projects, extending the life of our site to 2064,” said Mike Rencheck, Bruce Power’s President and CEO.

“Today’s announcements represent a $914 million investment in Ontario’s highly skilled workforce, which will create untold economic opportunities for the communities in which they operate for many years to come.”We look forward to growing our already excellent relationships with these supplier partners and unions as we work toward our common goal, supported by an operating record, of continuing to keep Canada’s largest infrastructure project on time and on budget."

By extending the life of Bruce Power’s reactors to 2064, the company will create and sustain 22,000 jobs annually, both directly and indirectly, across Ontario, while investing $4 billion a year into the province’s economy, underscoring the economic benefits of nuclear development across Canada.

At the same time, Bruce Power will produce 30 per cent of Ontario’s electricity at 30 per cent less than the average cost to generate residential power, while also producing zero carbon emissions, aligning with Pickering NGS life extensions across the province.The Hon. Glenn Thibeault, Minister of Energy, said today’s announcement is good news for the people of Ontario.”

Bruce Power’s Life-Extension Program makes sense for Ontario, and the announcements made today will create good jobs and benefit our economy for decades to come,” Minister Thibeault said.

“Moving forward with the refurbishment project is part of our government’s plan to support care and opportunity, while producing affordable, reliable and clean energy for the people of Ontario.”Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources and MP for Northumberland-Peterborough South, offered her support and congratulations.”

Related planning includes Bruce C project exploration funding that supports long-term nuclear options in Ontario.

Canada’s nuclear industry, including its advanced manufacturing capability, is respected internationally,” Rudd said. “Bruce Power’s announcement today related to the advanced manufacturing of key components throughout Ontario as part of its Life-Extension Program will allow these suppliers to have a secure base to not only meet Canada’s needs, but export internationally.”

 

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