Anthony -
The “grace alone” was pulled from the Joint Declaration of Doctrine on Justification. Within that document, the Lutherns and Catholics were able to agree upon Grace alone and it not equating to faith alone.
I agree that good works do not merit our salvation. Good works complete our faith. Faith that manifests itself in obedience, love, and good works.
Good works done out of faith do merit salvation. This is a teaching of the Church. We will be judged - that is,saved or condemned - according to our works.
Council of Trent:
Chap. 16. The Fruit of Justification, that is, the Merit of Good Works, and the Reasonableness of that Merit
To men, therefore, who have been justified in this respect, whether they have preserved uninterruptedly the grace received, or have recovered it when lost, the words of the Apostle are to be submitted: “Abound in every good work, knowing that your labor is not in vain in the Lord” [1 Cor. 15:58]; “for God is not unjust, that he should forget your work and the love, which you have shown in his name” [Heb. 6:10], and: “Do not lose your confidence, which has a great reward” [Heb. 10:35]. And therefore to those who work well “unto the end” [Matt. 10:22], and who trust in God, life eternal is to be proposed, both as a grace mercifully promised to the sons of God through Christ Jesus, “and as a recompense” which is according to the promise of God Himself to be faithfully given to their good works and merits. For this is that “crown of justice which after his fight and course” the Apostle declared “was laid up for him, to be rendered to him by the just judge and not only to him, but also to all that love his coming” [2 Tim. 4:7ff.]. For since Christ Jesus Himself as the “head into the members” [Eph. 4:15], and “as the vine into the branches” [John 15:5] continually infuses His virtue into the said justified, a virtue which always precedes their good works, and which accompanies and follows them, and without which they could in no wise be pleasing and meritorious before God, we must believe that to those justified nothing more is wanting from being considered as having satisfied the divine law by those works which have been done in God according to the state of this life, and as having truly merited eternal life to be obtained in its own time (if they shall have departed this life in grace [Rev. 14:13]), since Christ our Lord says: “If anyone shall drink of the water, that I will give him, he shall not thirst forever, but it shall become in him a fountain of water springing up unto life everlasting” [John 4:14]. Thus neither is “our own justice established as our own” from ourselves, nor is the justice of God [Rom. 10:3] “ignored” or repudiated; for that justice which is called ours, because we are justified through its inherence in us, that same is (the justice) of God, because it is infused into us by God through the merit of Christ.
Canon XXVI: If anyone saith that the just ought not, for their good works done in God, to expect and hope for an eternal recompense from God, through His mercy and the merit of Jesus Christ, if so be that they persevere to the end in well-doing and in keeping the commandments; let him be anathema.
Canon 32. If anyone shall say that the good works of the man justified are in such a way the gifts of God that they are not also the good merits of him who is justified, or that the one justified by the good works, which are done by him through the grace of God and the merit of Jesus Christ (whose living member he is), does not truly merit increase of grace, eternal life, and the attainment of that eternal life (if he should die in grace), and also an increase of glory: let him be anathema.