Just Transition Act of 2014

Just Transition Act of 2014
An Act of the Federal Parliament providing for a phase-out of oil and natural gas energy in the Kingdom of Delkora and guaranteeing a just transition to renewable energy
Citation	Federal Act 2014-1
Territorial extent	Kingdom of Delkora
Enacted by	Delkoran Federal Parliament
Date enacted	23 April 2014
Introduced by	Emma Kolvensen, Minister of Energy
Status: In force

The Just Transition Act of 2014 (Federal Act 2014-1) is a Delkoran federal law that establishes a process for Delkora to completely phase out its oil and natural gas industries by 2030 in favor of 100% renewable energy. In addition to establishing a timeline for abolition of these industries and providing for major investments in renewable energy development, it also puts in place protections and reparations for frontline communities and workers in affected industries. In this way, it has been cited as one of the most comprehensive models of a just transition in Tyran.

Background

Delkora had previously phased-out its coal industry in the late 1990's in favor of expanded solar, wind, and hydroelectric power during the chancellorship of Emma Jørgensen. This phase-out had included extensive protections for workers, including guaranteed pensions, job training, and funding for environmental cleanup; this approach was used as a model for the Just Transition Act, which focused primarily on Delkora's oil and natural gas industries

The act was originally introduced in 2004 by the government of Kol Vossgaard, but failed due to unified opposition from right-wing parties and some moderates within the Liberal Party and National Labor. Nonetheless, public support for major action on climate change grew in subsequent years as the issue garnered more attention. As part of the coalition agreement negotiated between the Liberals, National Labor, and the Greens in the lead-up to the 2014 federal election, the three parties pledged their support for the act and campaigned on it.

Just Transition White Paper

In March 2014, the Ministry of Energy published the Just Transition White Paper, which outlined the Azengaard government's plans for achieving a just transition to 100% renewable energy by 2030. It stated the opinion of the Delkoran government that "anthropogenic climate change is driven primarily by systemic and structural features of the global economy, not by individual behaviors or consumer choices." Accordingly, it promoted rapid, large-scale government intervention targeted at the "corporate and financial roots of the problem." The paper committed the Delkoran government to the following goals:

• Halt the exploration, extraction, and refinement of oil and natural gas in Delkora
• Divest from all petrochemical financial interests
• Meet 100% of Delkora's energy needs through renewable energy by 2030
• Involve workers and local communities in every stage of the transition process and preserve their economic security
• Prioritize the concerns of frontline communities and provide reparations to those most adversely impacted by the oil and natural gas industries

Contents

Part I: Expropriation of Petrochemical Infrastructure

Part I of the act provides for the immediate nationalization of all oil and natural gas infrastructure, reserves, and companies in Delkora and establishes procedures for the compensation of affected parties. It directs that these expropriated assets be placed under the administration of the state-owned oil company KDP.

Ownership of expropriated properties is to be transferred to local governments at the conclusion of the phase-out process described in Part II. Local authorities have wide discretion with regards to redeveloping these properties, although any redevelopment contract entered into with a private company must include a federally-approved community benefits agreement.

Part II: Phase-out Timeline

Part II outlines the process of phase-out, establishing specific end dates for production and sale of oil and natural gas. It bans exploration and extraction of oil and natural gas in Delkora and its exclusive economic zone effective 1 January 2020, while also banning importation as of this date. Refinement is banned beginning 1 January 2025, and sales of petrochemical products in the Kingdom are prohibited effective 1 January 2030. Full public and private sector divestment from oil and natural gas interests in mandated by 2035.

Part III: Provisions for Affected Workers

Part III establishes the National Petrochemical Workers Pension Fund to support oil and natural gas workers affected by the phase-out. Currently employed workers whose positions will be eliminated under the act are entitled to a minimum of five years worth of payments equivalent to the net salary and benefits provided for under their last collective bargaining agreement effective on their final day of employment. These workers are likewise entitled to cost-free job training funded by the federal government. All workers are guaranteed a full continuation of existing pension benefits.

Part IV: Remediation and Reparations Procedures

Part IV deals with environmental remediation of expropriated oil and natural gas properties and states that the former owner of a site will be financially liable for any remediation it requires. A system of reparations, to be administered in the form of direct payments, is established for localities and individuals who have suffered adverse environmental or health effects from the oil and natural gas industries. These reparations are funded primarily by existing federal carbon tax revenues.

Part IV also enhances civil and criminal penalties for violations of federal environmental law and makes it easier for state and local governments, as well as individuals, to bring environmental suits.

Part V: Renewable Energy Development

Part V requires the Kingdom to meet 100% of its energy needs through renewable energy by 1 January 2030, in addition to detailing priorities for renewable energy development and creating new subsidy and grant programs. Most new development will be overseen directly by the Federal Public Works Commission, which is permitted to hire up to 3.5 million workers over a 10 year period to provide for the construction of new renewable energy infrastructure, as well as maintenance and repair of existing infrastructure.

Wind energy is cited as the top priority for renewable energy development and allocated the most funding, followed by hydropower and solar energy. The government's commitment to phase out nuclear energy by 2035 is reaffirmed.

The sale and importation of new petrol and diesel cars is banned effective 1 January 2025, while existing ones will be subject to annual emissions testing after that date. Government funding for research and development of electric car technologies is substantially increased, as is funding for public transportation.

Legislative history

The act was introduced in early 2014 by energy minister Emma Kolvensen as the Azengaard government's first piece of legislation. It received considerable media attention, with regular TV coverage of the early committee hearings and floor debates. Shortly after its introduction, the General Labor Confederation of Delkora issued a statement endorsing the bill, as did numerous environmental organizations, think tanks, and prominent climate scientists. It was opposed, meanwhile, by the Petrochemical Employers Association and numerous lobbying groups associated with the fossil fuel industry.

The bill was assigned to three committees in the Chamber of Representatives: Commerce, Industry, and Trade; Labor and Pensions; and Environment and Natural Resources. It underwent six weeks of committee hearings that featured testimony from the president of the Energy Workers Union, the CEO of KDP, various federal officials, state and local leaders, workers in the affected industries, and numerous scientists. After passing from committee with minor amendments, the bill was scheduled for floor debate.

Government MPs touted the bill as "making good on Delkora's responsibility to its citizens, the world, and future generations." Right-wing opposition MPs, meanwhile, generally decried the bill as "federal overreach" and accused the government of "killing jobs" and undermining Delkora's energy security. Notably, the New Conservative faction of the Conservative Party came out in support of the bill. Far-left MPs supported the act but criticized parts of it, including the length of the phase-out timeline and the "meager" reparations it provided for.

Repeated motions by opposition parties to extend debate and refer the bill back to committee led the government to accuse them of trying to stall the bill in bad faith. In response, the government made a successful motion to waive the third reading and bring the bill to a final vote. The bill subsequently passed 329-171 on April 23 and was sent to the Chamber of Nobles.

In the Chamber of Nobles, the bill was referred to the Committee on Economics and Trade. The committee proposed minor amendments to Part I that loosened the regulations imposed upon local governments. Several state governments transmitted statements either supporting or opposing the bill, which were read on the floor.

The amended bill subsequently passed 164-36 and was returned to the Chamber of Representatives. After some debate, the amendments were agreed to and the bill was sent to King Haldor VII for the royal assent and later countersigned by Chancellor Azengaard, formally becoming law.