State and Federal Coal Transition Funding
When the Office of Just Transition was launched in 2019, with the express purpose of fulfilling the state’s moral commitment to help ensure that coal transition communities and workers would be part of a just and inclusive transition away from coal, there were few expectations of significant funding to help with those transitions. However, in 2021, the state and the federal government, resulting from and in reaction to the COVID-19 pandemic, began providing funding for transition communities. The Colorado Legislature has, to date, appropriated $35 million, which has resulted in grant programs and other projects, for the benefit of coal community and worker transitions. Thus far, OJT has approved $4.9 million in grants across all Tier One Coal Transition Communities and one Tier Two Community, as well as committing approximately $600,000 for other projects - matching funds for grants, engagement at the Public Utilities Commission, partial funding for an energy study, and a grant writer/manager program, among others - that indirectly support the communities and workers.
The federal government also began several significant funding programs that have benefited and will continue to assist coal transition communities. The first of these federal funding programs was the American Recovery Program Act with its $1.9 trillion intended to help the economy recover from the pandemic. Within ARPA, the Economic Development Administration created a coal communities commitment, allocating $300 million of their $3 billion specifically for coal communities. Of that, Colorado coal transition communities received over $8.5 million for various projects, some using OJT grant funding as match. The Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act all followed. Collectively, those three laws will be investing roughly $2 trillion into the country, with billions specifically dedicated and/or available to coal transition communities and workers. Because multiple federal agencies are involved, the Interagency Working Group on Coal & Power Plant Communities and Economic Revitalization have consolidated the funding opportunities into a searchable database called the Funding Clearinghouse.
Grant Writer/Manager Program
To provide communities with assistance in navigating the federal funding, the state created a grant navigator program through the Regional Councils of Government. The navigators will work with all communities, including transition communities, in their region to help identify types and levels of funding that may be available for identified projects. The navigators can help transition communities identify potential federal funding sources for infrastructure and energy transition related projects in their communities. In conjunction with that effort, OJT is piloting a program, beginning in June, to provide transition communities, access to a grant writer/manager. The grant writer/managers will work with the navigators and communities to identify priority projects and then write the federal grant applications, track the grant’s timeline and goals, and manage grant reporting requirements. If you are interested in learning more about the transition community grant writer/navigator pilot program, please contact Terri Livermore at terri.livermore@state.co.us.
State Legislation
The Colorado state legislature wrapped up its business on Monday, May 8, after working late into the evenings and through the weekend. Through the crush, several energy transition related bills passed and are now awaiting the Governor’s signature, but, for the first time in two years, no additional state funding for transition efforts were included. A few bills are shown below - for a more comprehensive list of bills, check the OJT website in late May.
SB23-283 - Mechanisms for Federal Infrastructure Funding: Adds $84 million to the state’s existing Infrastructure Investment and Jobs Act (IIJA) cash fund and also allows Colorado communities to use money from the fund for planning and grant matching for federal Inflation Reduction Act (IRA) grant applications.
HB23-1247 - Assess Advanced Energy Solutions in Rural Colorado: The Colorado Energy Office will conduct studies of advanced energy solutions and storage technologies. One study will focus on Northwestern Colorado and the West End of Montrose County, and one on Southeastern Colorado, which include coal transition communities. The studies will assess the effects of various energy resources on electricity costs and on disproportionately impacted communities.
HB23-1074 - Study Workforce Transitions To Other Industries: This study will explore workforce transitions for oil and gas workers and workers impacted by automation. It includes an evaluation of transferable and non-transferable skills, identification of existing and emerging industries for job transferability, the impact of technology on workers, which occupations are facing the most disruption due to automation, and identification of barriers and ways to remove them. The study will develop policy and incentive proposals for programs transitioning workers to existing and emerging industries.