As coal-fired power plant shutdowns drive a steep decrease in demand for coal in the Western U.S. and elsewhere, policymakers have struggled to balance the need for urgent action on climate with the responsibility to ensure a just transition for communities that have depended for generations on coal plants and coal mines. Two new reports from the Rocky Mountain Institute offer hope — and some policy solutions.
Researchers analyzed legislation designed to support communities transitioning away from coal-dependent economies that was considered or passed by state legislatures over the past decade. Colorado and New Mexico are highlighted in the report for their efforts that could serve as models for other states looking to ease the transition to 21st-century energy sources.
Colorado's Office of Just Transition, established by 2019 legislation, created a Colorado Just Transition Action Plan and has begun distributing grants for various economic development projects. Also in 2019, New Mexico passed the Energy Transition Act and authorized significant funding for economic development, aid to workers and communities including tribes, and the costs associated with shutting down coal plants. These and other policies received an infusion of additional support from the Inflation Reduction Act passed in August of this year.
From their analysis of state-level legislation and policy, researchers at RMI developed a framework to guide other states grappling with the transition away from fossil fuel-based economies. The three-part framework calls for: relief for workers and communities in the wake of job losses; reclamation of coal mine and coal plant sites; and reinvestment in communities seeking to diversify their economies away from coal and other fossil fuels.
Taken together, the framework and the specific policy examples offer hope to communities across the West that a just transition is both necessary and achievable in the race to address the climate crisis.
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