Infrastructure – Page 8

Supply chain havoc is getting worse — just in time for holiday shopping

Posted on November 12, 2021 by Lone Candle

“Gadgets are particularly vulnerable to shortages because they include many different components. Consider all the parts that go into a PlayStation 5 or a new laptop, including their chips, outer shells, and screens. Many of these components require their own specialized manufacturing facilities, which are typically in different factories and often in different countries. For a device to be delivered on time, all of these parts need to be made in sync. Right now, that’s not happening.”

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“Demand for these components has run up against efforts to contain Covid-19 in the countries where the production and assembly of many goods actually take place. Amid a recent delta variant outbreak and nationwide lockdown in Malaysia, the government designated electronics manufacturers critical businesses so that production could continue. In May, Vietnam directed vaccines directly to factory workers, while urging smartphone manufacturers working in the country, like Samsung, to do the same. (Vietnam’s Covid-19 challenges haven’t gone away: This past weekend, tens of thousands of workers fled the country’s commercial center after the government, which is still struggling to access vaccines, lifted pandemic lockdown restrictions.)”

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““What will happen is that a phone will be delayed because they’re waiting on their plastic supplier, and the plastic supplier is waiting on the ingredient,” Penfield, the Syracuse professor, said. “It just takes one supplier — and it could be the base ingredient supplier — to fully screw up your supply chain.””

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“All these problems mean that consumers are seeing rising prices and shipping delays for a wide range of products. So those looking ahead to the holiday shopping season might want to get an early start, and not just on consumer electronics.”

Lebanon’s electricity was down for a day, but the crisis was years in the making

Posted on November 11, 2021 by Lone Candle

“the crisis came to a head..when the nation’s two largest power stations ran out of enough diesel fuel to provide even a few hours of electricity in a country already confronted with multiple crises.”

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“The blackout comes just over a week after the government allowed a contract with a Turkish company supplying power via two barges off the coast of Beirut to lapse, cutting off that energy supply.
Though common, private generators proved insufficient during the outage — as Beirut-based journalist Bel Trew pointed out on Twitter Saturday, not only are such generators incredibly expensive to run and equally subject to Lebanon’s fuel shortages, but they do little to keep essential services like hospitals running.”

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“Lebanon has dealt with energy problems for decades; hours-long outages have long been a part of everyday life. But the country’s current economic crisis, combined with political corruption, has turned what was once a serious, but for many, manageable inconvenience into a far more acute crisis.”

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“The shutdown comes as Lebanon is experiencing shocking hyperinflation; the Lebanese lira, which is pegged to the dollar, has dropped 90 percent in value since fall 2019 and is currently trading about 18,900 lira per dollar on the black market. Prior to Lebanon’s 2019 economic implosion, the exchange rate was 1,500 lira per dollar.

That astronomical inflation makes ordinary goods like medicine hard to come by, much less enough fuel to power an entire country.

Critically, the compounding crises have serious political implications, both internally and outside of Lebanon. Hezbollah, the Iran-backed Shia militant group — which is part of Lebanon’s government, although the US has designated it a terror group — brought in gasoline fuel by the truckload from Iran via Syria, according to a New York Times report last month, apparently flouting US sanctions.

Currently, according to the Washington Post, those US sanctions are also a major obstacle to a plan for Lebanon to import gas from Egypt via Syria, which could improve the long-term outlook for Lebanon’s power grid. That could soon change, as US ambassador to Lebanon Dorothy Shea confirmed in August that the Biden administration is seeking “real, sustainable solutions for Lebanon’s fuel and energy needs.”

For the time being, however, the Lebanese government has been conspicuously absent in responding to the interconnected crises facing the country, despite the fact that Lebanon formed a new government last month. That absence has only served to highlight Hezbollah’s ability to deliver basic goods where the central government fails, potentially giving the group a larger foothold in the country.

Lebanon’s new government is also its first functional administration since a major explosion rocked its capital, Beirut, last year, according to the BBC. In the aftermath of that crisis, the existing government resigned, creating a stalemate that took 13 months to resolve.”

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“Lebanon’s 2019 financial collapse sprang from decades of bad economic policy: Ultra-wealthy, deeply entrenched public servants have long benefited from a peculiar political system and enriched themselves further by helping themselves to public funds. From 2018 to 2020, the country’s GDP fell from $55 billion to $33 billion — a precipitous drop typically associated with the outbreak of conflict”

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“The explosion also destroyed Lebanon’s major grain silo, leaving the country with less than a month of reserves at the time. It also destroyed Beirut’s port area, which handled about 70 percent of the food imports in a country that imports about 85 percent of its food.”

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“”Lebanon’s political system is the product of a decades-old power-sharing arrangement among leaders of Lebanon’s 18 religious sects, the most important being the Sunni and Shia Muslims and Maronite Christians. This system, known as confessionalism, parceled out political power according to sectarian quotas, with each sect usually led by one or several members of prominent political families.”

Despite the lack of public services and the blatant corruption of those in power, Lebanese politicians have generally proved adept at playing up sectarian disputes and doing just enough to keep their constituents satisfied.”

With Ports Clogged, Some Retailers Are Looking for Alternative Supply Chains

Posted on November 6, 2021 by Lone Candle

“The Wall Street Journal reports that Walmart, Target, Costco, and Home Depot are among the major retailers to adopt the “if you want something done right, do it yourself” approach to importing goods. Worker shortages and COVID-19 protocols have slowed trans-Pacific shipping considerably—it now takes about 80 days to transport items from Asia to the U.S., about twice as long as it did before the pandemic, the Journal reports.”

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“many of the bottlenecks are domestic issues. For example, major ports in Europe and Asia operate around the clock, but American ports run at about 60 percent capacity because they close at night and on Sundays. Even when dozens of ships are waiting to be unloaded, inflexible union rules that govern dockworkers’ and truckers’ hours make it difficult to meet swelling demand.

By chartering smaller, private ships to carry their goods, retailers like Walmart are hoping to bypass the backlogs by landing at smaller ports up and down the east coast. That will cost more money—and those costs will be passed onto consumers—but that’s better than running out of inventory during the Christmas rush. Home Depot, for example, is relying on chartered ships to deliver only a small percentage of its overall inventory with a focus on high-demand items like plumbing supplies, power tools, holiday decor, and heaters, the Journal reports.

Getting goods onshore is only half the battle. There are plenty of other bottlenecks to be navigated, like a 25-mile freight train backup that occurred at a major shipping facility outside Chicago earlier this year. At the port in Savannah, Georgia, The New York Times reports that workers are “running out of places to put things” as they unload ships, snarling both ground- and sea-based transportation.”

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“”The coronavirus pandemic has snarled global supply chains in several ways. Pandemic checks sent hundreds of billions of dollars to cabin-fevered Americans during a fallow period in the service sector. A lot of that cash has flowed to hard goods, especially home goods such as furniture and home-improvement materials. Many of these materials have to be imported from or travel through East Asia. But that region is dealing with the Delta variant, which has been considerably more deadly than previous iterations of the virus. Delta has caused several shutdowns at semiconductor factories across Asia just as demand for cars and electronics has started to pick up. As a result, these stops along the supply chain are slowing down at the very moment when Americans are demanding that they work in overdrive.””

Joe Biden Wants To Spend Trillions on Infrastructure. His Environmental Reforms Ensure He’ll Have To.

Posted on November 5, 2021 by Lone Candle

“Passed in 1969, NEPA requires federal agencies to study the environmental impacts of actions they take, whether that’s funding a new highway or approving a new pipeline. Over the decades, the burden imposed by NEPA has grown: The environmental reviews it mandates take years on average to complete and can run hundreds if not thousands of pages.
Donald Trump’s administration tried to streamline things a bit by limiting the environmental effects that agencies had to examine and by putting definitive time and page limits on NEPA reviews.

Even those marginal changes, implemented in September 2020, proved controversial with many environmentalists. Their concerns have resonated with the Biden administration.

“The basic community safeguards we are proposing to restore would help ensure that American infrastructure gets built right the first time, and delivers real benefits—not harms—to people who live nearby,” said CEQ Chair Brenda Mallory on Thursday.

The proposed rule published by the CEQ in the Federal Register would make a number of changes.

Most significantly, it would restore requirements that agencies’ NEPA reviews take into account the indirect and cumulative effects of projects.”

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“Environmentalist groups have generally praised these changes.”

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“Other NEPA experts are more critical, arguing that this is an ineffective and potentially counterproductive way to address climate change.

“All it does is create a little more paperwork,” says Eli Dourado, a senior research fellow at Utah State University’s Center for Growth and Opportunity. “Given the need to build a lot of infrastructure and new technologies and physical stuff in the world, NEPA is probably on net harming our response to climate change.”

Indeed, NEPA has slowed down a number of projects that environmentalists would typically support for their emission-reducing potential.

The U.S. Bureau of Ocean Energy Management’s 2019 decision to perform a cumulative impact analysis under NEPA of a massive wind farm being constructed off the coast of Massachusetts has significantly delayed that project.

It will likewise take years for the federal government to perform a NEPA-mandated review of a plan to charge drivers a toll to enter lower Manhattan. Environmentalists and transit advocates have generally praised that congestion pricing plan for its potential to reduce carbon emissions and to raise money for public transit. The tolls were supposed to be up and running in January 2021. The need to perform an environmental assessment for the project will mean that it now won’t start until 2023 at the earliest.

All the additional green investments the Biden administration and Democrats in Congress want to fund with their $1 trillion infrastructure bill and $3.5 trillion Build Back Better legislation could run into a similar fate.

“It’s making some of the infrastructure projects they want to do radically more expensive,” says Neil Chilson, a senior research fellow at Stand Together. He says the regulatory changes will also empower the nation’s NIMBYs to slow down projects they dislike.”

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“By expanding the number of effects that have to be considered in the NEPA process, the Biden administration is giving project opponents more room to claim that an environmental review is insufficient.

Federal agencies and private project sponsors, in turn, will have to spend more time preparing litigation-proof environmental documents to preempt these complaints, says Chilson.

That could be particularly damaging for solar plants that are proposed to be constructed on public lands in the American west, and which have attracted fierce opposition from local groups concerned about their impact on endangered species and recreational lands.”

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“CEQ has said that reversing those Trump-era tweaks is only the first phase of its planned rulemaking. In a second phase, the administration says, it plans to make more substantive changes that create “efficient and effective environmental reviews.”

That leaves open the possibility that we’ll get more productive reforms later on, says Dourado.”

Why progressives still aren’t voting for the infrastructure bill

Posted on November 3, 2021 by Lone Candle

“Originally, progressives had identified five broad areas where they wanted investments: the care economy, affordable housing, climate jobs, a pathway to citizenship for DACA recipients, and reductions to prescription drug prices. The original $3.5 trillion version of the spending bill included many of these issues, but because of Manchin’s and Sinema’s concerns, multiple areas were significantly cut back or dropped entirely.

Biden’s new $1.75 trillion framework ultimately invests heavily in early childhood education and climate but does not include a major provision to help reduce prescription drug prices, a pathway to citizenship for DACA recipients, or paid family leave.

And areas that survived cuts still saw dramatic reductions in spending. For example, Democrats’ original budget measure contained $450 billion for long-term home care and $332 billion for affordable housing. Biden’s framework, meanwhile, includes $150 billion for the former and $150 billion for the latter.

Sinema has opposed Democrats’ more expansive proposals to reduce prescription drug prices — but agreed to a narrower option that includes a smaller pool of drugs. A pathway to citizenship for DACA recipients also isn’t expected to make it into the legislation because of the rules governing the budget reconciliation process and the Senate parliamentarian’s existing ruling advising against its inclusion. And paid family leave has run into opposition from Manchin, who’s worried that the policy would be too burdensome for businesses.

Biden’s framework still has about $100 billion allocated for immigration reform, though it’s unclear whether it will make it past this procedural hurdle. Democrats’ latest pitch to the parliamentarian will focus on issues like the legal visa backlog and a shield from deportation for some unauthorized immigrants, the New York Times reports. Lawmakers are also still finagling some of the details for the bill, leaving the door open for the possible return of some policies.

Progressives back the framework even with the existing omissions. In its current state, it includes several of their demands on child care subsidies, funding for clean energy tax credits, and a Civilian Climate Corps. Additionally, they argue that the talks on the bill wouldn’t have even happened without the pressure they’ve put on Democratic leadership and moderate lawmakers.”

Biden’s vaccine mandate has cargo giants in a pre-holiday panic

Posted on October 25, 2021 by Lone Candle

“A trade group for air cargo giants like UPS and FedEx is sounding the alarm over an impending Dec. 8 vaccine deadline imposed by President Joe Biden, complaining it threatens to wreak havoc at the busiest time of the year — and add yet another kink to the supply chain.”

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“The deadline has been hailed by public health officials as a way of increasing vaccination rates as the country continues to struggle with the Covid-19 pandemic. But business groups and conservatives have warned that it could have damaging economic impacts. The deadline brushes right up against the peak holiday season and as some of the biggest cargo distribution companies, including UPS and FedEx, are already battling unprecedented labor shortages.”

Joe Manchin won’t support a key climate program. Alternatives won’t be enough.

Posted on October 18, 2021 by Lone Candle

“A key climate policy designed to phase out fossil fuels will likely be cut from Democrats’ upcoming reconciliation package due to opposition from Sen. Joe Manchin (D-WV), who has reportedly refused to back the measure as negotiations over the budget bill continue.

According to the New York Times’s Coral Davenport, who first reported the news on Friday, Manchin, who chairs the Senate Energy and Natural Resources Committee, will not support the sweeping clean electricity program widely seen as the centerpiece of the bill’s climate plan.

The $150 billion program — officially known as the Clean Electricity Performance Program, or CEPP — would reward energy suppliers who switch from fossil fuels like coal and natural gas to clean power sources like solar, wind, and nuclear power, which already make up about 40 percent of the industry, and fine those who do not.

Experts believe the program is the most effective way to slash US carbon emissions significantly enough to prevent the global temperature from rising by 1.5 degrees Celsius, a threshold which would have drastic consequences for the planet if exceeded.”

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“Manchin’s home state of West Virginia is one of the largest producers of coal in the US, and Manchin himself benefits financially from the coal industry.

Manchin’s spokesperson, Sam Runyon, told the New York Times that Manchin opposed the CEPP because he couldn’t support “using taxpayer dollars to pay private companies to do things they’re already doing.””

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“Manchin is correct in saying that some companies are indeed changing over to sustainable electricity production; currently, almost 40 percent of electricity generated in the US comes from a clean energy source, either nuclear or renewable. But corporations are ultimately concerned about their bottom line, and the carrot-and-stick approach of the proposed clean electricity program incorporates that reality by incentivizing companies to make the drastic changes necessary to address climate change — and penalizing them if they don’t.

The other reason a clean electricity program could prove key to addressing climate change is that it creates a national standard, as opposed to the patchwork of municipal and state legislation and individual efforts currently in place. Among other impacts, the program would help bring lagging areas up to speed with the ambitious targets set by the Biden administration, which call for 80 percent of the nation’s electricity to come from renewable sources by 2030, and 100 percent by 2035.”