Tag Archives: jobs

The Political Project of MCRC v. EPA, 3

Third in a Series

Wisconsin Governor Scott Walker, pushing jobs.

Wisconsin Governor Scott Walker, pushing jobs.

Sunlight and Skullduggery

When it comes to parceling out the land, water and future of the Lake Superior region to the highest bidders, few have matched the auctionary zeal demonstrated a couple of years ago by David Dill, a member of Minnesota’s House of Representatives. In the debate over the proposed Boundary Waters Land Exchange, Dill was among those urging that the state should exchange School Trust Lands in the Boundary Waters area for 30,000 acres of Superior National Forest. Since by law Minnesota would be bound “to secure maximum long-term economic return” from lands thus acquired, Dill proclaimed, “we should mine, log, and lease the hell out of that land.”

Dill understood this much: if there is hell to be found in Superior National Forest, there is probably no better way to bring it out.

The unanswered question in Minnesota and throughout the Lake Superior region is not, however, theological: it’s whether extractive industries and the developments they bring will actually deliver “long-term” economic benefit for the region, and not just a short-term spurt or boom, or another period of destructive plunder followed by long-term decline. That is not just a question up for debate by economists and other experts; it is, at root, a political question.

As I’ve suggested in my first two posts in this series, the complaint filed by the Marquette County Road Commission against the EPA is part and parcel of an effort to shut this question down, or exclude it from public consideration. This complaint is only incidentally about a haul road. It’s part of a political offensive that aims to stifle debate and hand the future of the region over to unseen powers. Those powers lurk under legal cover of the dark 501c4 “public welfare” organization funding the MCRC’s lawsuit against the EPA.

So with this lawsuit, the Road Commission pretends to political authority that goes way beyond building and maintaining Marquette County’s roads: it assumes the authority to direct economic development in Marquette County and decide what’s in the area’s best interest. In order to seize that authority, I’ve said, the complaint sets up an “anti-mining” straw man, and tries but fails to prove that the EPA had a “predetermined plan” to prevent the construction of County Road 595.

No surprise, then, that the argument gets especially tendentious whenever the complaint tries to demonstrate collusion or discover “anti-mining” attitudes within the ranks of the EPA itself; and where it comes up short, it raises questions about the motives and associations of those bringing these allegations.

Consider, for example, the report to Senator Carl Levin’s office by an unidentified “informant” (Exhibit 15), who alleged that at a meeting with “environmental and tribal groups,” EPA Regional Administrator Susan Hedman made remarks to the effect that:

1. the EPA will fight mining in Michigan,
2. that there will be no mining in the Great Lakes Basin,
3. that there was or will be an EPA sponsored Anti-Mining committee, and
4. that the KBIC [Keweenaw Bay Indian Community] tribe had received an EPA grant which [sic] they used the funds to sponsor an anti-mining activity.

The informant seems to have been lying in some places and exaggerating in others: Hedman claims she never made the remarks attributed to her. But the MCRC complaint doesn’t hesitate to repeat the informant’s false allegations, and it tries to build its case around Senator Levin’s staffer’s awkward summary of what she heard from an unnamed informant who proved untrustworthy in every particular.

True to pattern, the complaint casts both environmental groups and the KBIC as “anti-mining groups” as it doubles down on the informant’s lies. The detail about the EPA grants is wildly inflated. The EPA gave the tribe “hundreds of thousands of dollars,” the MCRC claims, even as the KBIC was “actively lobbying USEPA against local mining and against CR 595.” This turns the false report of an unspecified “anti-mining activity” to “actively lobbying,” and it neglects to mention that EPA grants to the KBIC are, in large part, to help the tribes cope with the lasting damage done by mining and industrialization. (In recent years, grants have supported things like a survey of tribal fish consumption habits to reduce health risks associated with contaminants in fish, or the tribal Brownsfield response program.)

The phrase “actively lobbying” is especially cheeky here, for a couple of reasons.

First, the Eagle Mine project went ahead without the full, prior and informed consent of the KBIC. A Section 106 hearing ignored testimony from tribal elders that the ground at Eagle Rock is sacred to the Ojibwe, and objections by the KBIC and the Ho Chunk to the location of the mine portal at Eagle Rock were summarily dismissed. Tribal appeals to the EPA went unheeded.

Second, if we are really going to start tracking lobbyists and money spent on lobbying efforts, then in all fairness let’s spread the sunshine around and give a full account of money and efforts spent actively lobbying for mining interests in northern Michigan and throughout the Lake Superior region over the last decade. Or if that is too arduous a task, a full accounting of the money behind this complaint would suffice.

The complaint also fails to mention that the EPA responded immediately to Senator Levin’s office with a full schedule of grants given to the KBIC and the charter of the “cross-media” mining group at EPA Region 5. Cross-media groups are formed to satisfy the Cross-Media Electronic Reporting Rule. The fearsome EPA-sponsored “Anti-Mining” group turned out to be a specter of the informant’s imagination, and really comes down to bureaucratic reshuffling in order to make electronic reporting easier. There’s just no red flag to raise.

Elsewhere, when the complaint tries to demonstrate “anti-mining” sentiment within the EPA itself, the best the MCRC can do is police tone. There is an EPA official who writes “sarcastically” to a colleague at the Army Corps of Engineers, and then there are a couple of sentences in a January 2011 email by Daniel Cozza, an EPA Section Chief. Cozza refers to Wisconsin as “the new front” and says that in a three-hour town hall meeting Governor Scott Walker was “pushing jobs” when promoting the Gogebic Taconite project.

I think the WI Governor’s additions to the Welcome to WI signs stating ‘Open for Business’ is a sign of things to come. I listened to the 3hour [sic] townhall meeting last night regarding the G-TAC or taconite mining project in the Gogebic Penokee range and sounds like they are pushing jobs.

This sounds pretty innocuous, and I am unsure where the offense is: “pushing jobs”? That’s a pretty apt description of the rhetorical tactics used to promote mining in midwestern districts and around the world for that matter. Job numbers are overstated, as Tom Power notes in his study of sulfide mining projects in Minnesota. In Wisconsin, Senator Tim Cullen, Chair of the Senate Select Mining Committee, said he was amazed that immediately upon signing a controversial mining bill into law in 2013, Scott Walker and his cronies were “telling the workers of Wisconsin, who need jobs, that the jobs are just around the corner….The people who understand the mining industry know the jobs are years away.”  Sounds like they were being pretty pushy to me.

Of course, “front” might suggest a battle or military campaign, or it might imply that Cozza sees himself or the EPA as embattled, fighting against the encroachment of mining projects — which of course the EPA is, and will continue to be if it is going to protect the environment against the resurgence of mining all around Lake Superior. Forbes Magazine, hardly a bastion of environmental activism, struck the same note when it ran an article on Gogebic Taconite’s Chris Cline with the title: “Billionaire Battles Native Americans Over Iron Ore Mine”; Dale Schultz, a Republican State Senator who broke with his party to oppose Wisconsin’s mining legislation, said his conscience would not allow him to “surrender the existing environmental protections without a full and open debate”: no one gasped in horror and astonishment at the white-flag battleground metaphor. Mike Wiggins, Chair of the Bad River Band of Lake Superior Chippewa, did not mince words and declared the Gogebic project tantamount to “genocide,” as it would kill the wild rice crop. The list could go on.

So the real objection is that some people working at EPA are not enthusiastically on board with the agenda of the mining company and its development plans for the area. They’re not supposed to be; they’re supposed to protect the environment. The complaint is still far from proving that the EPA itself, when making its specific determinations about CR 595, acted with bias or according to a predetermined plan.

It’s interesting, however, that the complaint should make an example of Daniel Cozza and his attitudes toward Wisconsin mining. Cozza has a long history with the environmental regulation of mining in Wisconsin, and he was working in EPA Region 5 when the Crandon Mine project unraveled, due to the inability of the mine’s backers, which included Eagle Mine developers Rio Tinto and Kennecott Minerals, to meet tribal water quality standards and deliver appropriate environmental assurances. Cozza is said to have caused “consternation” when he reminded Crandon Mining in a letter of its “duty to look at the cumulative economic and environmental impacts” of other mining projects in the region; and it was this big picture perspective that prevailed when Governor Tommy Thompson signed a mining moratorium into law in 1998.

To many people inside and outside the mining industry, Crandon seemed to signal the end of mining in Wisconsin, and there are still bitter feelings within the industry about the failure of the Crandon project. Having lost in the courts and the legislative arena, the industry and its backers resorted to other means, achieving their first big comeback victory in Wisconsin with Scott Walker’s 2013 mining bill.

By signing it, the governor also obliterated his past. He had voted for the mining moratorium in 1998 as a member of the Wisconsin Assembly. As governor, Walker worked to ease regulations, and did a decisive about-face during his 2012 recall election, when he received a $700,000 contribution from Chris Cline and Gogebic Taconite. That mind-blowing, mind-changing contribution came via the Wisconsin Club for Growth, a dark money 501c4 like Stand U.P., the organization now putting up other people’s money — whose? — for the Marquette County Road Commission’s lawsuit against the EPA. Corruption is in the cards.

The Hysteria of H.R. 761

The authors of the National Strategic and Critical Minerals Production Act (H.R. 761) complain that we depend on China — can you believe it? China! — for rare earth minerals that are “vital to job creation, American economic competitiveness and national security.” But the Act, which passed in a House Committee on Natural Resources vote on May 15, 2013 with bipartisan support, will effectively ease regulation of foreign multinational mining companies operating in the United States, including those who mine here and market U.S. minerals in — yes, you guessed it — China.

Bureaucratic delay puts “good-paying mining jobs…at the mercy of foreign sources,” according to the Act. Our security and prosperity are threatened from without, so we need to protect ourselves from within; and we are asked to believe that the surest way to do that is to replace careful assessment and regulatory oversight of risky mining operations with new efficiencies. The Act laments the weight of “onerous government red tape”: if only Atlas would shrug.

The authors of this act do not even try to disguise their contempt for the role of government in regulating industry and the “environmentally responsible development” they purport to uphold. Citing a report by international mining consultancy Behre Dolbear Group (with offices in Beijing, Chicago, Guadalajara, Hong Kong, Sydney, and Ulaanbaatar, Mongolia, among other places, where, presumably, its teams of advisors and engineers steadfastly champion the strategic and economic interests of the United States), they note that “the United States ranks last with Papua New Guinea out of twenty-five major mining countries in permitting delays, and towards the bottom regarding government take and social issues affecting mining.”

That last clause about “government take” and “social issues affecting mining” gets sneaked into the sentence here without consideration for the social effects mining operations have: society here is just in the way of business and taxes or takings are just a burden. This is reckless thinking, but it’s carefully smuggled into discussions of the Act with the distracting reference to Papua New Guinea. That line snorts mockery and imperial contempt, and it’s intended to shame and prompt outrage — like the newspaper headlines the ranking inspired: The Wall Street Journal: “U.S., Papua New Guinea at Bottom of List for Mining Permit Delays.” Mineweb: “Protracted Permitting Delays Depress U.S. Mine Investment.” The Hill: “U.S. Wins Race to the Bottom on Mining Permits — Again.” The comparison with Papua even figured into an article by M.D. Kittle in the Wisconsin Reporter: “Wake Up, Environmentalists: Your Cell Phone Was Mined Somewhere Else.”

Needless to say, these newspaper discussions aren’t balanced by any appreciation of the complex social, environmental and human rights issues around mining in Papua New Guinea (or the United States). The promoters of H.R. 761 certainly aren’t going to invite debate on the situation in Papua — where growth in the mining sector has brought corruption, violence, and environmental devastation. Their intention is clear: they want to hold up Papua as one of those foreign and dirty places, a slow, corrupt and silly place, a little, squalid, underdeveloped and dark place. Certainly not an efficient place.

Lest the Chinese enslave us or we end up living like pygmies in grass huts, we have to make it easier for big mining companies to give Americans jobs. That is the hysteria just under the surface of H.R. 761. The legislation is so broadly and poorly written, and either so cynical or so ill-conceived, that any mining operation will be able to claim its protection from regulatory oversight. The “strategic and critical” exemption from government interference and delay will be repeatedly invoked, as it was by Republican Chip Cravaak in 2011, who at the time represented Minnesota’s 8th district in the U.S. House.

Before his defeat in 2012, Cravaak advanced the claim that exploiting the copper and nickel resources of the Boundary Waters Canoe Area in Minnesota would be “necessary for U.S. strategic interests.” According to a 1978 law, those areas can only be mined in case of national emergency; but Polymet, a Canadian company, has been working since 2006 to obtain permits for an open pit mine in Superior National Forest. They negotiated a land exchange and loan scheme to get around the prohibition. Cravaak waved the stars and stripes for them on the Hill. Meanwhile, Toronto-based Polymet made a deal with the Swiss company Glencore to sell its American metals on the global market. At the time, Elanne Palcich noted, demand was especially strong in China and India.

All Clear for the Mining Boom in Michigan’s UP, Unclear What That Portends

Just before the holidays I wrote a short post about the one-two punch that Michigan legislators delivered during the 2012 lame duck session. They rushed through legislation to make Michigan a “right to work” state despite widespread protests and they passed Emergency Manager Legislation in defiance of voters.

Most of the news coverage of these bills focused on the action in Lansing and effects this legislation might have in the Detroit auto industry. I wondered aloud (or at least on Twitter) what implications these bills might carry for towns and working people in the Upper Peninsula.

There’s a new mining boom underway in the region, with global giants like Rio Tinto and Orvana exploring, leasing, and re-opening old mines.

This map [pdf], put together by the Lake Superior ad hoc Mining Committee, shows all mines, mineral exploration and mineral leases in the Lake Superior Watershed as of 2010.

Mining-Activity-Lake-Superior-2011

The map merits some careful study. As you can see, there is already significant activity in the Upper Peninsula. On the Canadian side, especially around Thunder Bay and further north, there’s been a leasing boom. Lots of gold on the eastern shore; copper and nickel as you move further west. They’re also exploring for uranium in at least two places.

The new mining is going to put enormous pressure on the Lake Superior basin. There are the usual environmental hazards associated with mining — subsidence, toxic runoff, acid mine drainage. Mining puts the waterways – the Lake and the streams and rivers that feed it – at risk. And then there is the infrastructure that’s going to be built to support all those mines. Access roads and haul roads, like the proposed CR 595 in Big Bay, roads to get to those roads, gas stations to fuel the vehicles that run along those roads, housing to shelter the people who drive on those roads to get to work and haul the ore from the mines, and so on.

Governor Snyder and his cronies in the Michigan legislature are doing everything they can to encourage this new activity. Just before the holidays, the Governor signed a third lame-duck bill, addressing the taxes that mining companies operating in Michigan will pay. The new bill, brought by outgoing Republican representative Matt Huuki, relieves mining companies of up front costs.  Indeed, they will pay no taxes at all until they start pulling minerals from the ground. Even then, companies will pay only 2.75 percent on gross value of the minerals they extract. So a million dollar sale of Michigan’s mineral wealth on the copper exchange will yield the state a paltry $27,500 in taxes.

35 percent of these so-called severance taxes will go to a “rural development fund to support long-term economic development opportunities.”

A number of things aren’t clear to me. What, exactly, is meant by “economic development” here? What’s the best course of development for a rural region, and for the Lake Superior region? How will fueling the boom benefit the region over the long term? How much if any of this money will go to alleviating the environmental impact that all this new mining is bound to have? How is it possible to talk about rural development without taking responsible stewardship of the environment into account?

It’s also unclear what sort of working conditions in the new mines the “right to work” legislation might allow, and whether the Emergency Manager bill could be used to limit community oversight.

For now, at least, it looks like the big mining companies are running the show in the UP, and the vague promise of economic development — whatever that means — has trumped all else.

To Prosper We Need More Than Jobs

I’m always thrown by attempts to measure prosperity purely in terms of economic growth or high employment figures. Those measures are too restrictive, and they are also disorienting. Politicians who offer jobs leave me cold, and do us all a disservice. As I’ve written several times, the country is, or ought to be, more than a workcamp.

There’s an opportunity to reflect on that last point in Close to Home, the documentary Ofra Bickel made for Frontline about the 2008 financial crisis. In Chapter 4, we see Rob, a human resources executive who has “been out of work for a year,” attending a series of “networking functions.” He has found the job search an “insurmountable” challenge, and he hopes – in vain – that these networking events will help him get over the hurdle.

We see Rob and his fellow networkers – all of them out-of-work middle management types — exchanging business cards, practicing their pitches, learning how to introduce and present themselves. It’s an endless rehearsal for a debut that never comes, and Bikel finally decides to give up on Rob and on the networkers: it’s pretty clear none of this is going to pay off.

As Bikel realizes, there is something pathetic in their efforts. There is something ridiculous — and telling — here as well: a gathering of able-bodied, educated, smart American adults, all in dire economic straits, and all they can think to do is to practice for their next job interview. It never occurs to Rob or any of his fellow networkers to do something together, to join efforts and start something, to create something where there is nothing. In a word, they never really build a network. They simply want to get back on the corporate payroll. It’s disturbing to think that that’s all they know how to do.

What happened to that can-do spirit? American gumption? Bootstraps? Independence? Entrepreneurialism? Nowadays, over 90 percent of adult Americans are regular employees (as opposed to self-employed people); whether they have jobs or not, most Americans can think of themselves only as employees. Of course, it wasn’t always this way. There was a time, before the industrial era and the great waves of immigration it brought, when the majority of Americans did not have a “job” and wouldn’t take one unless they had to. “Being an employee was considered a form of bondage, only a step above indentured servitude,” as John Curl puts it in his history of American cooperative movements. “One submitted to it due to economic hardship, for as short a time as possible, then became free once more, independent, one’s own boss.”

We still like to pay tribute to the freedom from wage slavery we once enjoyed, or lament its loss. Take another film, this one from 1961: The Misfits, directed by John Huston, written by Arthur Miller and starring Clark Gable, Marilyn Monroe and Montgomery Clift. Gable plays Gay, an aging cowboy who thinks that most anything beats “working for wages” and sees employment for what it is – a loss of freedom.

Gay’s tragedy is that he has outlived the possibility of that freedom. The Wild West has become nothing more than a rodeo show; the cowboy life Gay leads is “like roping a dream. I just gotta find another way to be alive, that’s all,” he realizes, “if there is one anymore.” In the film’s closing scene, Gay, bloodied and defeated, drives off toward a new life, or at least what’s left of his life, with his friend Guido yelling after him: “Where’ll you be? Some gas station polishin’ windshields? Makin’ change in a supermarket? Try the Laundromat! They need a fella there to load the machines!” That’s all that’s left for cowboys in Miller’s postwar America.

The most important thing to realize is that it doesn’t have to be this way. You don’t have to succumb to the despair of another networking meeting or turn in your cowboy hat for a Walmart greeter’s cap. And you don’t have to pull yourself up by your own bootstraps. Few people can or ever have. Throughout our early frontier history and well into the industrial era, independent Americans relied on altruism, mutual-aid societies and cooperative working arrangements to build houses and raise barns, protect one another from fires or other losses, or “to accomplish their liberation from wage slavery.” That’s the story Curl’s book tells — a side of the American story we don’t usually acknowledge, but ought to understand and appreciate if we hope to prosper, together, with or without jobs.

A Connecticut Lobbyist In Obama’s Court

There has been plenty of griping and grumbling over the past twenty-four hours about the President’s appointment of General Electric CEO Jeffrey Immelt to lead the President’s Council on Jobs and Competitiveness. While he may be an idol of corporate America, Immelt appears to be an unlikely champion of American job creation. “Since Immelt took over in 2001,” Shahien Nasiripour reports in an article on Huffington Post,

GE has shed 34,000 jobs in the U.S., according to its most recent annual filing with the Securities and Exchange Commission. But it’s added 25,000 jobs overseas.
At the end of 2009, GE employed 36,000 more people abroad than it did in the U.S. In 2000, it was nearly the opposite.

To make matters worse, Connecticut-based GE has not exactly been focusing its investments on American innovation and growth: in 2008 and 2009, Nasiripour points out, GE decided “indefinitely” to invest earnings abroad, while booking losses at home: as a result, General Electric enjoyed a negative tax rate in 2009 and a low rate of around 5 percent in 2008.

It stands to reason that more inducements and allurements, in the form of corporate tax breaks, are in the works to help focus Immelt and other corporate leaders on job creation. To help bring some of those foreign investments home, Immelt and other corporate titans will most likely continue to push for making the Research and Development Tax Credit permanent. They give the impression they are holding the spirit of Thomas Edison hostage, and will only release him if their conditions are met.

You might be forgiven for asking whether this is really the best way to spur American innovation, or whether Jeffrey Immelt and GE really have America’s best interests at heart. I’m sure Immelt believes he does; but can he, really? Maybe it all depends on how you sweeten the deal. Immelt himself reassured analysts and investors yesterday that he will always put GE first: “My commitment to GE and my leadership at GE, that doesn’t change,” he said on a conference call. He knows, I suppose, that no man can serve two masters.

The disturbing truth is that there really isn’t any great conflict of interest here: GE’s interests are not so far from American lawmakers’ interests. This happy consensus is largely the result of GE’s lobbying campaign, which in 2010 amounted to $39.3 million. $9 million of that campaign was dedicated to lobbying around a single project: the F-136 propulsion engine.

Developed for the Lockheed Martin F-35 Joint Strike Fighter jet (a big $382 billion project), the F136 propulsion system is GE’s “alternative” to the F-135 propulsion system developed by Pratt & Whitney. An alternative. That is, there are no plans to use GE’s F-136 engine in the fighter jets. Pratt & Whitney won the government contract for the F-35’s propulsion system. You’d think that would have resolved the matter.

But these things have a momentum all their own. Funding for the F-136 started as an earmark in a defense bill, and grew. The Bush administration tried to kill the F-136 engine; Secretary Gates called it a “boondoggle,” and President Obama promised to veto any defense bill that included the GE engine. Robert Gibbs yesterday reiterated that the engine is “not something we need.” But GE, arguing that competition drives down costs, has lobbied and continues to lobby for its engine, running ads, working both sides of the aisle, and spreading its message through the press.

Newly elected House Republicans are not going to stop the F-136. Congress has already funded its development to the tune of $3 billion, and funding will continue unabated through March 4th of this year. And just yesterday, a GE spokesman told ABC Newsthat “newly elevated leaders are even more likely to keep the engine program afloat.” It remains to be seen whether, come March, the President can or will stand his ground.