March 10, 2023

Congressman Castro Leads Texas Congressional Democrats in Push for Strong Labor Standards, Union Jobs in Federally Funded Hydrogen Energy Projects

Read the full letter

SAN ANTONIO – Today, Congressman Joaquin Castro (TX-20) led the full Texas Democratic Congressional Delegation in a letter urging U.S. Department of Energy Secretary Jennifer Granholm to prioritize applicants for the Regional Clean Hydrogen Hubs Program (H2Hubs) who commit to creating high-quality, good-paying union jobs in Texas.

“As Members of Congress who stand united with workers, we applaud President Biden for making it clear that positive collaboration with labor organizations strengthens the American economy. That is why we believe the Department of Energy should ensure that the federal investments made through the H2Hubs program will include concrete labor standard commitments to support the Texan workforce,” the lawmakers wrote.

In the letter, lawmakers note the low union density, low wages, lack of benefits, and rising income inequality in Texas, and urge the Department of Energy to prioritize applicants for the H2Hubs program whose applications include:

  • Written confirmation that H2Hubs will be a source of high-quality, good-paying union jobs in Texas.
  • A signed community workforce agreement with participating Texas labor organizations and disadvantaged community groups.
  • A written labor peace agreement for all operations and maintenance employees as they decide whether to form a union.
  • A written plan for existing unionized fossil fuel workers to transition into unionized hydrogen jobs.

“This is a powerful statement from Representative Castro and the entire Texas Democratic delegation that workers and good union jobs must be at the very center of the transition to new forms of energy production.  The DOE has the power to make sure these new jobs are good jobs, and this congressional letter lays out the path to get it done. We appreciate and applaud these leaders for standing tall for working Texans, said Texas AFL-CIO President Rick Levy.

"The Texas workforce experiences a combination of dangerous conditions, low wages, lack of benefits and training, and a high proportion of immigrant workers and workers of color subject to these conditions," said Texas Climate Jobs Project Executive Director Bo Delp. "Federal programs like the Department of Energy Regional Clean Hydrogen Hub Program must hold the private sector in Texas accountable to reducing carbon emissions, and in a way that creates good-paying, middle class, union jobs."

In addition to Congressman Castro, the letter is signed by Reps. Colin Allred (TX-32), Greg Casar (TX-35), Henry Cuellar (TX-28), Jasmine Crockett (TX-30), Lloyd Doggett (TX-37), Veronica Escobar (TX-16), Lizzie Fletcher (TX-07), Sylvia Garcia (TX-29), Vicente Gonzalez (TX-34), Al Green (TX-09), Sheila Jackson Lee (TX-18), and Marc Veasey (TX-33).

In November 2021, Congressman Castro and the co-signers of the letter who held Congressional office at the time voted for the Infrastructure Investment and Jobs Act, a $1.2 trillion investment in infrastructure, energy, and jobs. The law established the Regional Clean Hydrogen Hubs program, which includes up to $7 billion to establish hydrogen hubs across the United States to help communities benefit from clean energy investments, good-paying jobs, and improved energy security. In December 2022, the Department of Energy encouraged 33 regional consortiums – including three in Texas – to submit full applications for consideration. Full applications are due in April 2023. 

The full letter can be read below:

Secretary Granholm:

We are writing regarding Texas labor organizations seeking labor standards for any future development of clean hydrogen projects and infrastructure in Texas as part of the Department of Energy’s Regional Clean Hydrogen Hubs Program (H2Hubs). Congress, through the Bipartisan Infrastructure Investment and Jobs Act, authorized H2Hubs to facilitate demonstration projects involving networks of clean hydrogen producers, consumers, and the connecting infrastructure. Whether it is hydrogen production, processing, delivery, storage, or end-use, H2Hubs will undoubtedly create jobs.

As Members of Congress who stand united with workers, we applaud President Biden for making it clear that positive collaboration with labor organizations strengthens the American economy. That is why we believe the Department of Energy should ensure that the federal investments made through the H2Hubs program will include concrete labor standard commitments to support the Texan workforce.

Texas employment is unique in comparison to many other parts of the country. Our state experiences a combination of low union density, low wages, lack of benefits and apprenticeship training, rising income inequality, and high proportion of immigrant workers and workers of color subject to these conditions.

As representatives of communities impacted by these economic realities, we believe that the Department of Energy should prioritize applicants for the H2Hubs program whose applications include:

  • Written confirmation that H2Hubs will be a source of high-quality, good-paying, union jobs in Texas;
  • A signed community workforce agreement with participating Texas labor organizations and disadvantaged community groups;
  • A written labor peace agreement for all operations and maintenance employees as they decide whether to form a union;
  • And a written plan for existing unionized fossil fuel workers to transition into unionized hydrogen jobs.

We are deeply committed to the Biden administration’s goal of achieving a 50-52% reduction of greenhouse gas pollution from 2005 levels by 2030.3 In addition, we strongly support the Biden administration’s commitment to ensuring that “the 2030 emissions target will create millions of good-paying, middle class, union jobs” and “advance environmental justice, and improve the health and security of communities across America.”

As the President works towards these commitments, we believe we must ensure new projects do not contribute to the climate crisis. We are confident that H2Hubs has the potential to positively transform our state by making significant clean energy investments that will accelerate the use of hydrogen as a clean energy carrier. However, it is our contention that green hydrogen hubs – hydrogen made through electrolysis that is powered by renewable energy – are prioritized in Texas as we work towards President Biden’s goal of a 100% clean energy grid by 2035.

Thank you for your attention to this matter.