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Sparks

The ID.4 Could Be Volkswagen’s First EV Made With U.S. Union Labor

The UAW makes its first move.

A Volkswagen sign.
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In Shawn Fain’s victory speech after the United Autoworkers won significant raises and benefits from the Big Three automakers earlier this fall, the union president promised to go on to accomplish what no other UAW president had managed to do. “We’re going to organize non-union auto companies like we’ve never organized before,” he said.

On Thursday, the union made its first move: Workers at Volkswagen’s plant in Chattanooga, Tennessee went public with a union drive, announcing that more than 30% of the plant had signed union authorization cards.

After the UAW won 25% raises in its deals with GM, Ford, and Stellantis, Volkswagen gave its workers an 11% raise. In a press release, workers at the Chattanooga plant said they were striking due to pay that lagged behind their unionized peers, mistreatment by management, forced overtime, and a lack of time off. “Turnover at the plant is a serious problem,” said Josh Epperson, an equipment operator in assembly. “I have trained new people on the line and most of them are gone in a few months. They don’t have the tools and the support they need to thrive.”

The Chattanooga plant opened 15 years ago and is VW’s only factory in the U.S.; by contrast, all of the company’s workers in Germany are unionized. The U.S. plant currently produces the VW Atlas, Atlas Sport, and the company’s only electric model currently available here, the ID.4.

Workers at the U.S. plant have already attempted to unionize twice, in 2014 and 2019, both of which were narrow losses. An account of what went wrong in 2019 by Chris Brooks, a labor activist and current strategist for Shawn Fain, said that lawmakers threatened to pull incentives for the plant’s expansion and new electric vehicle line if the plant flipped.

Similar expansions are on the table again this time around. In early November, senior vice president and head of strategy at VW Group of America Reinhard Fischer announced plans to bring a new, under-$35,000 EV to the U.S. market. He said the company would either build the vehicle at the Chattanooga Plant or in Puebla, Mexico. He also said that the company was considering assembling battery packs for the vehicle in the U.S. due to subsidies in the Inflation Reduction Act.

While 30% support is low, it clears the threshold to submit a petition to the National Labor Relations Board to hold a vote on the union’s formation. Still, the Chattanooga workers are likely to hold off for more. The UAW has said that once 50% of workers at a nonunion plant sign cards, Fain will hold a rally at the plant. If the drive gets 70% support, UAW will seek recognition from the company, or otherwise submit a petition to the NLRB.

There are 13 non-union automakers operating in the U.S. Tesla, which has six factories here, could be next — Fain told Reuters that many workers at the EV giant have also expressed interest in organizing.

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Sparks

Trump Promises ‘Fully Expedited’ Permitting in Exchange for $1 Billion of Investment

But ... how?

Donald Trump.
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President-elect Donald Trump on Tuesday rocked the energy world when he promised “fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals” for “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America,” in a post on Truth Social Tuesday.

“GET READY TO ROCK!!!” he added.

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Sparks

The Mad Dash to Lock Down Biden’s Final Climate Dollars

Companies are racing to finish the paperwork on their Department of Energy loans.

A clock and money.
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Of the over $13 billion in loans and loan guarantees that the Energy Department’s Loan Programs Office has made under Biden, nearly a third of that funding has been doled out in the month since the presidential election. And of the $41 billion in conditional commitments — agreements to provide a loan once the borrower satisfies certain preconditions — that proportion rises to nearly half. That includes some of the largest funding announcements in the office’s history: more than $7.5 billion to StarPlus Energy for battery manufacturing, $4.9 billion to Grain Belt Express for a transmission project, and nearly $6.6 billion to the electric vehicle company Rivian to support its new manufacturing facility in Georgia.

The acceleration represents a clear push by the outgoing Biden administration to get money out the door before President-elect Donald Trump, who has threatened to hollow out much of the Department of Energy, takes office. Still, there’s a good chance these recent conditional commitments won’t become final before the new administration takes office, as that process involves checking a series of nontrivial boxes that include performing due diligence, addressing or mitigating various project risks, and negotiating financing terms. And if the deals aren’t finalized before Trump takes office, they’re at risk of being paused or cancelled altogether, something the DOE considers unwise, to put it lightly.

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Sparks

Treasury Finalizes Another IRA Tax Credit Before You Know What

The expanded investment tax credit rules are out.

The Treasury Department building.
Heatmap Illustration/Getty Images

In the waning days of the Biden administration, the Treasury Department is dotting the i’s and crossing the t’s on the tax rules that form the heart of the Inflation Reduction Act and its climate strategy. Today, Treasury has released final rules for the Section 48 Investment Tax Credit, which gives project owners (and/or their tax equity partners) 30% back on their investments in clean energy production.

The IRA-amended investment tax credit, plus its sibling production tax credit, are updates and expansion on tax policies that have been in place for decades supporting largely the solar and wind industries. To be clear, today’s announcement does not contain the final rules for the so-called “technology-neutral” clean electricity tax credits established under the IRA, which will supercede the existing investment and production tax credits beginning next year and for which all non-carbon emitting sources of energy can qualify.

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